Biocon falls after Q2 PAT slips 23% YoY

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Net profit for Q2FY21 was impacted due to higher R&D expenses at Rs 148 crore (versus Rs 104 crore in Q2FY20) up by 42%, forex losses and higher staff & other expenses.

Profit before tax (PBT) in the first quarter stood at Rs 222.7 crore, down by 38.7% from Rs 363.3 crore in the same period last year. Total tax expense fell 77% year on year (YoY) to Rs 22.3 crore in Q2 September 2020.

EBITDA declined 8% to Rs 407 crore in Q2 September 2020 from Rs 441 crore in Q2 September 2019. EBITDA margin fell to 23% in Q2 September 2020 compared with 27% in Q2 September 2019.

Income from generics business increased 8% YoY to Rs 599 crore in Q2 September 2020, driven by a strong performance in generic formulations business in the US. In the API business, growth was largely driven by immunosuppressants and other speciality APIs.

Income from biosimilars business jumped 11% YoY to Rs 676 crore in Q2 September 2020 driven by sales of key biosimilars in developed as well as Most of the World (MoW) markets. Revenue from research services gained 12% YoY to Rs 520 crore in Q2 September 2020 driven by good performances in the Discovery Services and Dedicated R&D Centre businesses.

Commenting on the results, Kiran Mazumdar-Shaw, executive chairperson, Biocon said, "Consolidated revenue for Q2 FY21 increased 10% to Rs 1,760 Crore driven by 11% growth in Biosimilars, 12% in Research Services and 8% in Generics, businesses. EBITDA for the quarter stood at Rs 407 Crore and Net Profit (before exceptional item & discontinuing operations) was at Rs 174 crore. Our profitability was impacted on account of higher R&D expenses, staff costs, other expenses and forex losses. However, our core EBITDA margins stood at a healthy 32%, indicating sound operational performance. Our Insulin Glargine, Semglee, was commercialized in the U.S. by our partner Mylan, during the quarter, thus heralding our entry into the US Insulins market. With this launch, we have expanded our portfolio of Biosimilars and occupy a position of impactful influence in the Biosimilars segment."

Biocon is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune.