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Biocon Q4 Results: Profit Rises, Beats Estimates

Biocon's Q4 net profit rose 31% year-on-year to Rs 313 crore, while revenue was up 57% at Rs 3,773 crore.

<div class="paragraphs"><p>Biocon Chairperson Kiran-Mazumdar-Shaw. (Source: Reuters)</p></div>
Biocon Chairperson Kiran-Mazumdar-Shaw. (Source: Reuters)

Biocon Ltd.'s net profit rose in the fourth quarter, beating analyst estimates.

The Bengaluru-based drugmaker's profit rose 31% year-on-year to Rs 313 crore in the March quarter, according to an exchange filing. That compares with the Rs 270-crore consensus estimate of analysts tracked by Bloomberg.

Biocon Q4 Highlights (YoY)

  • Revenue rose 57% to Rs 3,773 crore as against an estimate of Rs 3,615 crore.

  • Operating profit was up 69% to Rs 997 crore, as compared with an estimate of Rs 862 crore.

  • Operating margin stood at 26.4% against 24.6% a year ago. Analysts had estimated it at 23.9%.

The board recommended a final dividend of Rs 1.50 per share.

Other Highlights (YoY)

  • Revenue from generics was flat at Rs 717 crore and contributed to 24% of the total revenue.

  • Biosimilars—Biocon Biologics Ltd.—reported growth of 114% at Rs 2,102 crore, accounting for 50% of the revenue.

  • Research services—Syngene—reported a growth of 31% at Rs 994 crore and made up 26% of the quarterly revenue.

  • Revenue from novel biologics was Rs 19 crore, up 56% during this quarter.

"FY23 has been a transformational year led by the acquisition of our partnered biosimilars business from Viatris, which has significantly contributed to Biocon’s robust consolidated financials," said Kiran Mazumdar-Shaw, executive chairperson at Biocon.

"Biosimilars continue to be the largest business segment for Biocon, with revenues of Rs 2,102 crore (in Q4), a growth of 114%, exiting the year on a $1 billion revenue trajectory,” she said.

Shreehas Tambe, chief executive officer and managing director at Biocon Biologics, said, “As we look ahead, we will be integrating the acquired business (Viatris’ global biosimilars) in a phased manner with over 70 emerging markets transitioning to Biocon Biologics shortly, followed by the U.S. and EU thereafter. FY24 will also see several important new launches, a key driver of growth."

Shares of Biocon closed 0.87% higher before the results were announced on Tuesday, as compared with a flat benchmark S&P BSE Sensex.