Biocon Q2 Results: Profit Falls 66%, Misses Estimates
Biocon’s Q2 profit fell year-on-year due to a tax write-off.
Biocon Ltd.’s second-quarter profit fell year-on-year due to a tax write-off, missing forecasts.
Net profit of the Bengaluru-based drugmaker fell 66% year-on-year to Rs 47 crore in the three months through September, according to its exchange filing. That compares with the Rs 173-crore consensus estimate of analysts tracked by Bloomberg.
The after-tax profit was impacted by the company's decision to adopt the new tax regime notified u/s 115BAA of the Income Tax Act, 1961. That prompted the company to write off a balance of Rs 107 crore in the quarter towards minimum alternate tax, which can no longer be carried forward. Excluding this, and professional fees of Rs 14 crore towards the Viatris deal, net profits were down 10% year-on-year.
Profit fell 68% sequentially as well.
Biocon Q2 Highlights (YoY)
Revenue rose 26% to Rs 2,320 crore, against the estimated Rs 2,305 crore.
Operating profit was up 6% to Rs 471 crore, compared with the Rs 446-crore forecast.
Operating margin stood at 20.3% against 24.2% a year ago, and an estimate of 21%.
Other Highlights (YoY)
Revenue from generics saw a growth of 18% and contributed to 26% of the total revenue.
Biosimilars (Biocon Biologics Ltd.) reported growth of 34% at Rs 997 crore, accounting for 42% of the revenue.
Research services reported a growth of 26% and made up 32% of the quarterly revenue.
There was no revenue from novel biologics during this quarter.
Enhanced capacities and new launches will drive growth for their API and generic formulations business, while continued business momentum should help Syngene achieve its guidance for the full year, said Kiran Mazumdar-Shaw, executive chairperson at Biocon and Biocon Biologics, in the exchange filing.
"The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the biosimilars business in H2 FY23."
The conclusion of the strategic transactions with Viatris and Serum Institute, which are expected to be closed in Q3 FY22, will position Biocon Biologics as a fully integrated, leading global biosimilars player, said Dr Arun Chandavarkar, managing director at Biocon Biologics.
Shares of Biocon closed 1.94% higher before the results were announced, compared with a 0.28% decline in the benchmark Sensex.