Biocon Ltd on Wednesday announced its consolidated financial results for the first quarter that ended on June 30, 2022. The company reported a 71.1 percent year-on-year (YoY) jump in net profit at Rs 144.4 crore for the first quarter.
In the corresponding quarter last year, the company posted a net profit of Rs 84.4 crore. According to the biopharmaceutical company’s announcement, the revenue from operations stood at Rs 2,1395 crore during the period under review, up 21.5 percent against Rs 1,760.6 crore in the corresponding period of the preceding fiscal.
“We have had a strong start to the year. At a consolidated level, y-o-y revenues grew 23% backed by robust growth in both Biosimilars (29%) and Generics (19%). Core EBITDA grew 25% and margin improved to 31% compared to 30% in Q1FY22. and Net Profit grew 71% to Rs 144 Crore. Our financial performance this quarter includes the impact of annual increments in personnel costs as well as increased input and freight costs, pursuant to pandemic and geopolitical disruptions of global supply chains. R&D investments increased significantly by Rs 87 Crore this quarter reflecting pipeline progression to deliver future growth. All our three businesses are poised for the next phase of strong and sustainable growth which has been challenged during the two years of the COVID-19 pandemic,” Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics said in a statement on Wednesday.
Meanwhile, Siddharth Mittal, CEO & Managing Director, Biocon Limited announced that the strong year-on-year growth of the segment was driven by both our API and Formulations businesses, on a lower base in the corresponding period of the previous fiscal, which was impacted by COVID-related operational and supply chain challenges.
“Key new products launched in previous quarters continue to perform well. Our base business continued to encounter pricing pressure and rising input costs. Our commitment to bring affordable medicines to patients was reinforced with the launch of Mycophenolic Acid delayed release tablets, our vertically integrated formulation, for prophylaxis of organ rejection in adult patients who received kidney transplants. During the quarter, we undertook planned capacity expansions that required temporary manufacturing stoppages. These expansions will augment growth in the second half of this fiscal. Looking ahead, we will continue to invest in strengthening our product pipeline, optimizing cost structures and operationalizing our capacity enhancement projects,” Mittal said.
The company announced the results after the closing of the market hours.
“Biocon Biologics reported a year-on-year growth of 29% for Q1FY23 with revenues at Rs 977 Crore. Core EBITDA at Rs 361 Crore was up 33%, representing healthy margins of 37%. The strong performance was driven by sales of Glargine in the US, and key biosimilars in emerging markets. Initiation of global clinical trials for two monoclonal antibodies and advancement of our other pipeline assets led to a 120% increase in our R&D investments this quarter. Whilst this impacts EBITDA in the near term, such investments will create a strong portfolio to secure our future growth. Our strategic alliance with Serum Institute Life Sciences for vaccines and the acquisition of Viatris’ global biosimilars business are on track for closure in the second half of this calendar year,” Dr Arun Chandavarkar, Managing Director, Biocon Biologics Ltd. said in a statement.