Biotechnology company Biocon’s consolidated net profit for the first quarter fell almost 9% from a year ago to Rs 70.05 crore, while net sales were up over 10% to Rs 441.68 crore.
The earnings dissapointed the street leading to over 4% drop in the company’s shares in morning trade. At 10:30 hrs, Biocon shares were traded down 2.8% at Rs 360.15 on NSE.
Biocon said results for the year-ago quarter included Rs 11.52 crore in profit from operations of AxiCorp gmbh, which has since been sold. Biocon SA had in April agreed to sell its 70% stake in the German drug distribution subsidiary.
Excluding the discontinued operations Biocon’s net profit rose 7.4% in the three-month period. Consolidated operating profit margin was flat at 27.5% year-on-year.
The company said there was a "robust" increase in profit from its core manufacturing and services businesses, but there was lower licensing income recognition in the quarter.
"Licensing income from our partnered programmes will see a high degree of variability given the inherent nature of licensing recognition that is linked to development and regulatory timelines," said Murali Krishnan, president, group finance.
Biocon said the licensing income is expected to ramp up in the coming quarters.
"We are making steady progress on the biosimilar insulin front with a number of registration processes initiated in emerging markets. We expect to commence supplies of insulin and glargine to Pfizer for their India market launch in this quarter. We also plan to launch our insulin pen Insupen shortly," said chairman and managing director Kiran Mazumdar-Shaw.
In April-June, while revenue from Biocon’s biopharma business was up 8% year-on-year, domestic branded formulations business grew 28%. In Research Services, Biocon’s arm Syngene saw sales grow 21% year-on-year in the first quarter.
Source: www.moneycontrol.com
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