The shares of this pharma company rose nearly 2 percent after reporting a remarkable increase of 478 percent in net profits year-on-year.
Share Price Variation
In Friday’s trading session, the share price of Biocon Ltd reached an intra-day high of Rs.344 per share from its previous close of Rs.339.2 apiece, gaining around 2 percent in the session.
Financial Performance
The surge in the stock price was driven by remarkable net profit growth. Biocon Ltd reported consolidated revenue of Rs.3,433 crores for the quarter ending June 2024, marking a 0.3 percent increase from Rs.3,423 crores in the same quarter last year. However, quarterly, the company reported a drop in revenue of 12.3 percent from Rs.3,917 crores in Q4 FY24.
In terms of Profit After Tax (PAT), Biocon Ltd saw a staggering 478 percent year-over-year increase, reaching Rs.862 crores in Q1 FY25, up from Rs.149 crores in the June 2024 quarter. Additionally, PAT improved significantly by 287 percent from Rs.223 crores in Q4 FY24.
Biocon Ltd demonstrated impressive growth in profit margins. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin is currently at 38 percent compared to 23 percent in Q1 FY24 while Net Profit margin is currently at 14 percent compared to 2.9 percent in the same period.
The company’s Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 5.96 percent and 5.25 percent, respectively, while it holds a debt-to-equity ratio of 0.82.
Wide Presence
Biocon Limited, a leading global biopharmaceutical company, has an extensive global presence, with products available in over 120 countries, including the United States, Europe, and large emerging markets
The company serves a global customer base of over 750 clients and has a portfolio comprising more than 50 active pharmaceutical ingredients (APIs) and over 75 generic formulations
Management Commentary
Executive Chairperson of Biocon and Biocon Biologics, Kiran Mazumdar-Shaw said in a media release, “The outlook for this fiscal remains positive as we anticipate stronger growth in H2FY25, with new product launches in the Biosimilars and Generics businesses, including Liraglutide for diabetes and obesity in the UK and other markets. Additionally, we expect improved business prospects for Syngene, supported by a resurgent biotech funding environment in the U.S”.
Segment Revenue Composition
Biocon Ltd operates in four key business segments. In the quarter ending June 2024, the company earned 59 percent of its revenue from the Biosimilars segment, 19 percent from the Generic business segment, and 22 percent from the Research services segment. The company also operates in the Novel Biologics business but did not earn any revenue from this segment in the June quarter of 2024.
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Company Profile
Biocon Ltd is a biopharmaceutical company focusing on the research and development of therapies for the treatment of chronic conditions such as cancer, diabetes, and autoimmune diseases. It offers a range of active pharmaceutical ingredients (APIs), branded formulations, complex biologics and biosimilars including monoclonal antibodies (MAbs), rh-insulin, and insulin analogs.
Written by – Siddesh S Raskar
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