Excluding the exceptional item, the net profit figure stood at R47 crore. The company posted a 4% increase in total revenue for the quarter at R649 crore compared with R622 crore in the corresponding period last year. The Ebitda stood at R124 crore for the quarter. Biocons shares declined 3.73% to close at R278.50 on the Bombay Stock Exchange on Friday.
While revenue from the companys India-focussed branded formulations business grew 30% year-on-year to R84 crore, its biggest vertical of biopharmaceuticals shrunk 7% to R380 crore. Revenue from contract research services showed year-on-year growth of 41% at R166 crore.
The exceptional item accrues from Biocons earlier deal with Pfizer to market biosimilar versions of insulin and insulin analogs, which it ended in 2012. The exceptional item is income as a result of reassessment of the earlier amount set aside for the clinical and other obligated development costs of our insulin portfolio, post the re-licensing of insulin analog to Mylan, said a company spokesperson.
In February, Biocon had entered into an agreement with US-based pharmaceuticals company Mylan to collaborate on the global development and commercialisation of generic versions of its three insulin analog products. Biocon on Friday said it has received $20 million from Mylan as upfront payment for product development.
The company has announced a 100% dividend payout of R5 per share and special dividend of R2.50 per share following its re-licencing its insulin analogs portfolio.
This quarter has been skewed by certain items. There is a one-off performance payment for the senior executive team on account of various transactions and performance and the Mylan deal itself. There is also a foreign exchange element which gets factored this quarter, said Biocon chairman and managing director Kiran Mazumdar-Shaw. So if you look at it on an annualised basis, while we have seen revenue growth, our Ebidta has remained flat because of some of these items. The R&D spend has increased, exchange losses and of course the one-off bonuses we paid this year has skewed the Ebitda number.
For the year ended March, Biocon reported a 51% increase in consolidated net profit at R509 crore compared with R338 crore last fiscal, again helped by the one-time exceptional income. The companys revenue rose 18% to R2,538 crore during the fiscal on growth across its business segments.
Mazumdar-Shaw said the company saw its tax liability increase to R98 crore from R54 crore last fiscal because the tax incentive scheme for export oriented units and SEZs has been discontinued.