Biocon Q2 falls short of estimates; net profit dives 84% but revenue up 4%
Biocon Ltd on Wednesday (October 30) reported an 84.2% year-on-year (YoY) decline in net profit at ₹27.1 crore for the second quarter that ended on September 30, 2024. In the corresponding quarter last fiscal, Biocon posted a net profit of ₹172 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹54.7 crore for the quarter under review.
The company’s revenue from operations increased 3.7% to ₹3,590.4 crore against ₹3,462 crore in Q2 of FY24. The CNBC-TV18 poll had predicted revenue of ₹3,660.1 crore for the quarter under review.
At the operating level, EBITDA dipped 7.6% to ₹685.5 crore in the second quarter of this fiscal over ₹741.3 crore in the year-ago period. The CNBC-TV18 poll had predicted an EBITDA of ₹736 crore for the quarter under review.
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The EBITDA margin stood at 19.1% in the reporting quarter compared to 21% in the corresponding period in FY24. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 20% for the quarter under review.
Biocon reported net R&D investments of ₹200 crore for Q2, representing 7% of revenue, excluding Syngene. The quarter’s profit before tax and exceptional items stood at ₹72 crore, while a reported net loss of ₹16 crore was primarily due to a higher tax impact linked to the geographical split of profits and minority interests. Adjusted for exceptional items, the loss was ₹13 crore.
Biocon Biologics achieved Q2 revenue of ₹2,182 crore, up 19% YoY on a like-for-like basis, with a core EBITDA of ₹691 crore and a core EBITDA margin of 32%. Total EBITDA was ₹469 crore, reflecting a margin of 21%, which, after adjustments for forex impacts from the Japanese yen’s appreciation against the US dollar, stood at ₹550 crore with a 25% margin.
Biocon Biologics successfully refinanced its long-term debt of $1.1 billion through a combination of $800 million US dollar-denominated bonds and a new syndicated loan facility. The bonds have been listed on the Singapore Stock Exchange, and it is the first US dollar-denominated bond issuance by any biopharmaceutical company in Asia-Pacific, as well as the largest high yield debut bond issuance from India in the past 10 years.
Syngene, Biocon’s research services division, reported Q2 revenue of ₹891 crore, down 2% YoY, but up 13% on a sequential basis. This recovery was led by pilot projects from biopharma clients seeking alternatives to China. Syngene continues to expand its capacity to meet long-term demand, particularly for antibody-drug conjugates, peptides, and oligonucleotides.
Kiran Mazumdar-Shaw, Chairperson, Biocon Group, said, “Reported operating revenues of ₹3,590 crore reflect YoY growth of 8% on a like-for-like basis and core EBITDA and EBITDA margins of 28% and 20%, respectively remain healthy. We had a robust performance in the biosimilars business, up 19% on a like-for-like revenue basis, driven by strong market share gains in our US oncology and insulins franchises.”
She added, “Syngene has returned to sequential growth and has good visibility of a pickup in momentum in the coming quarters led by its discovery services and biomanufacturing CMO business.”
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The results came after the close of the market hours. Shares of Biocon Ltd ended at ₹320.80, down by ₹6.05, or 1.85%, on the BSE.
