Biocon Q4 Results: Profit Drops 46%, But Beats Estimates

Biocon Ltd.'s consolidated net profit declined 46% in the fourth quarter of fiscal 2024, but it surpassed analysts' estimates.

The company posted a net profit of Rs 223 crore in the quarter-ended March, in comparison with Rs 415 crore in the year-ago period, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had estimated a profit of Rs 164.27 crore.

• Revenue up 3.8% to Rs 3,917 crore versus Rs 3,774 crore (Bloomberg Estimate: Rs 3,890.29 crore).

• Ebitda down 8.2% to Rs 916 crore versus Rs 997 crore (Bloomberg Estimate: Rs 818.12 crore).

• Margin at 23.4% versus 26.4% (Bloomberg Estimate: 21%).

• Net profit down 46% to Rs 223 crore versus Rs 415 crore (Bloomberg Estimate: Rs 164.27 crore).

The Q4 performance was led by biologics that delivered the promised billion-dollar annual revenue milestone, marking the successful transition of the biosimilars acquisition from Viatris, said Kiran Mazumdar-Shaw, executive chairperson, Biocon and Biocon Biologics. Increased market shares of key products in the US, Europe and emerging markets, coupled with significant volume growth, were the highlights of the biosimilars business this quarter, she added.

"With the recent approval of Liraglutide in the UK, we added to our list of 'global firsts' and demonstrated our capability in developing complex GLP-1 products, which will be the key growth driver for the generics business, going forward. Syngene is well-positioned to benefit from the ‘China Plus One’ strategy, which is being rapidly adopted by US pharma and biotech companies," Mazumdar-Shaw said.

Business Highlights

Biocon Biologics

• Q4FY24 revenue at Rs 2,358 crore, up 12% Y-o-Y

• FY24 revenue crosses $1 billion; up 58% at Rs 8,824 crore

The segment contributed nearly 59% of the revenue. The company is benefiting from the integration of the acquired business.

We successfully integrated the acquired business 1 year ahead of plan, while ensuring business continuity and a seamless experience for our patients, customers, and partners, said Shreehas Tambe, CEO & Managing Director, Biocon Biologics Limited

Biocon Biologics has expanded its strategic collaboration with Eris Lifesciences, to provide access to its portfolio of Metabolics, Oncology and Critical Care brands in India.

Research Services: Syngene

• Q4FY24 Revenue at Rs 917 Crore, down 8% YoY

• FY24 Revenue at Rs 3,489 Crore, up 9%

Revenue stood at Rs 917 crore in Q4FY24. The company was impacted due to reduced demand for research and development services within U.S. biotech stemming from a difficult funding environment. The recent step up in new funding into U.S. biotech is expected to drive a recovery in demand for research and development services, the company said.

Generics: APIs & Generic Formulations

• Q4FY24 Revenue at Rs 719 Crore, down 3% YoY

• FY24 Revenue at Rs 2,799 Crore, up 1%

The generics business saw several operational successes during the quarter especially in the formulations business which offset the impact of a muted performance in the APIs business

Shares of Biocon closed 0.95% lower at Rs 308.95 apiece on the NSE, as compared with a 0.92% advance in the benchmark Nifty 50.