Riding on biologics wave, Biocon registers two fold growth during FY 2018-19

For the fiscal year ended March 2019, the Biocon's net profit rose over two-fold to Rs 905.3 crore as against Rs 372.4 crore for 2017-18. Company registered 64% growth in Q4 of FY19, earning 214 cr in net profits

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New Delhi: India’s leading biopharmaceuticals company, Biocon has announced its consolidated financial results for the fourth quarter and fiscal year ended 31st March 2019. The results show that the company has delivered a strong financial performance during FY 2018-19.

The company’s consolidated revenue from operations stood at Rs 1,528.8 crore for the quarter ended March this year as compared to Rs 1,169.5 crore for the same period year ago. It has also reported a 64 percent rise in its consolidated net profit to Rs 214 crore during the fourth quarter.

For the fiscal year ended March 2019, Biocon’s net profit rose over two-fold to Rs 905.3 crore as against Rs 372.4 crore for 2017-18.

The company’s consolidated revenue from operations for 2018-19 stood at Rs 5,514.4 crore as compared with Rs 4,129.7 crore in the year-ago period.

Given the strong performance, Biocon’s board has approved the issue of bonus shares in the proportion of 1:1, that is one bonus equity share of Rs 5 each for every one fully paid-up equity share held as on record date. It has also proposed a final dividend of Re 1 per equity share on a pre-bonus share basis.

Commenting on the highlights, Kiran Mazumdar-Shaw, Chairperson and Managing Director, stated: “Our Q4 FY19 performance was led by robust growth in our Biologics and Research Services business segments, supported by significant growth in the Small Molecules business.”

“On an annual basis, our revenue grew 31% to Rs 5,659 Crore, and net profit soared 143% to Rs 905 Crore. FY19 was a landmark year for the biologics business, which reported a growth of 97%, thus emerging as a key driver for Biocon’s incremental growth. Our three strategic business segments Small Molecules, Biologics and Research Services have reported a top-line of over Rs 1,500 Crore each this fiscal. A higher share of Biologics revenue boosted
profitability as reflected in the consolidated EBITDA margin of 27% for the full year despite a 34% increase in Net R&D expenses,” explained the Kiran M Shaw further.

In her outlook for the current financial year, she outlined: “Looking ahead in FY20, we expect to sustain the growth momentum across our business segments led by biosimilars. We expect to sustain core EBITDA margins despite higher R&D investments to fuel our future growth.”

Highlights: Q4FY19

♦ Biologics revenue nearly doubled, led by biosimilars portfolio performance in
developed and emerging markets.

♦ Branded Formulations India business reported a strong double-digit growth which was offset by a decline in UAE.

♦ Generic Formulations business grew multi-fold off a low base, reflecting our focus on vertical integration in the Small Molecules business

♦ Research Services subsidiary Syngene crossed the Rs 500 Crore Revenue milestone with a Net Profit milestone of Rs 100 Crore in Q4 on a standalone basis.

♦ To commemorate the 40th anniversary of Biocon Limited the Board recommended the issue of 1 bonus share for every 1 share held in Biocon.