Business

Biocon Q4 profit drops on COVID-19

Small molecules, research services post good growth

Biocon said its Q4 net profit has fallen 42.3% to ₹123.4 crore owing to a one-time hit to its biologics business due to COVID-19 pandemic.

However, revenue from operations rose 3% to ₹1,581 crore during the period. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 11% to ₹382 crore while EBITDA margin fell 500 basis points to 23%.

R&D expenses rose 36% to ₹125 crore.

“Q4FY20 witnessed a muted growth due to operational challenges, including a one-time COVID-19 related impact on our biologics business,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon.

“We are dealing with unprecedented challenges related to COVID-19 and as a science-led company, we are engaged in several initiatives spanning diagnostic tests, vaccines and therapies towards combating COVID-19. We have also implemented several workplace safety measures in accordance with the government’s guidelines, including temperature checks, wearing of masks, sanitising, zoning and physical distancing,” she said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

She added the small molecules and research services businesses of Biocon had delivered a robust growth of 15% and 14% respectively.

For the financial year 2019-20, the biopharma company had posted a 15% growth in revenue to ₹6,529 crore. Profit, however, dropped 17% to ₹748 crore

On a full-year basis, Biocon’s growth was largely powered by a strong performance of Biologics, which grew 29%.

Meanwhile, the company’s board approved the appointment of Indranil Sen, Vice-President, Finance as an Interim CFO and a key leader of the company, pursuant to the provisions of Section 203 of the Companies Act, 2013, effective from May 15, 2020.

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Printable version | May 30, 2020 8:32:12 AM | https://www.thehindu.com/business/biocon-q4-profit-drops-on-covid-19/article31596040.ece

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