COVID-19 impact: Biocon Q4 net down 42% at ₹123 crore

Biocon Ltd’s net profit declined 42 per cent to ₹123 crore in the fourth quarter of 2019-20 compared to the same period in the previous fiscal following muted revenue growth due to COVID-19 related impact on its biologics business, the company said.

The Bengaluru-headquartered biopharmaceuticals company said Q4FY20 revenue was up six per cent at ₹1,644 crore. FY20 revenue grew 15 per cent at ₹6,529 crore, while net profit (before exceptional item) rose four per cent to ₹760 crore, according to a company statement.

Commenting on the results, Kiran Mazumdar-Shaw, Executive Chairperson, said Q4FY20 witnessed a muted growth of six per cent with revenues at ₹1,644 crore due to operational challenges including one-time COVID-19 related impact on the company’s biologics business.

Small molecules and research services businesses, however, delivered robust growth of 15 per cent and 14 per cent, respectively. Small molecules business crossed an annual revenue milestone of ₹2,000 crore for the first time in 2019-20.

On a full-year basis, the company reported a revenue growth of 15 per cent led by a strong performance by biologics which grew by 29 per cent, small molecules by 18 per cent and research services by 10 per cent. “We believe that the Biologics business will recover in Q1FY21 and fully normalise from Q2FY21,” Mazumdar-Shaw said.

For FY20, core margins were strong at 33 per cent with EBITDA margin of 27 per cent and net profit margin of 11 per cent, the company said. “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,” Mazumdar-Shaw added.