Biocon net up nine percent in Q1

Bangalore, July 25 (IANS) India's biotech major Biocon Ltd. reported net profit of Rs.103 crore for the first quarter (April-June) of fiscal 2014-15, registering nine percent year-on-year (YoY) growth from Rs.94 crore in the same quarter last year.

In a regulatory filing to the Bombay Stock Exchange (BSE) Friday, the listed firm said income from total sales grew marginally, just three percent, YoY to Rs.719 crore this quarter (Q1) from Rs.694 crore in the same period last year.

Of the total sales, bio-pharmaceuticals generated Rs.547 crore and contract research services Rs.172 crore.

Other income, however, declined 19 percent to Rs.23 crore in first quarter from Rs.29 crore year ago.

Sale of branded formulations grew 10 percent YoY to Rs.111 crore during the quarter in the domestic market, which is in line with the industry.

"Our revenue growth this quarter has been muted. Our business performance reflects the challenges we are temporarily facing in some of our key markets, especially in the Middle East," Biocon chairperson Kiran Mazumdar-Shaw said in a statement here.

Earnings before interest, tax, depreciation and amortisatiom (Ebitda) also rose nine percent YoY to Rs.191 crore in the quarter from Rs.175 crore in the same quarter last year.

"We are working towards diversifying our regional dependencies to diminish the impact of such externalities though we have sustained our operating margins (26 percent) and profits despite increase in costs," Shaw said.

On the outlook for this fiscal, she said growth drivers for bio-pharma business remained intact and would play out during the year.

"Our business profitability has remained intact indicating benefits of portfolio optimisation. Our development pipeline across bio-similars and novel molecules continues to progress well. We are committed towards improving our performance in the coming quarters," Shaw said.

Noting that the progress on the development pipeline would help some of the molecules to enter the clinic, Shaw said the milestones were subject to various external dynamics, including the business and clinical trial environment in the country.

"The bio-pharma business was impacted in the quarter (Q1) by external factors, including the ongoing geopolitical conflicts in the MENA (Middle East & North Africa) region, affecting our growth. We believe this is a temporary phase, as the underlying demand remains robust. We hope that stability in the region will restore business momentum," she added.