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Biocon Q1 Report; Net Profit Tumbles by 30%; Shares Plunge 3%

Biocon reported a 30% YoY decline in its consolidated net profit to Rs 101.40 crore for the June quarter.

The biopharmaceutical company Biocon has released its financial results for the April-June quarter for the 2023-24 fiscal year. The company reported a 30% YoY decline in its consolidated net profit to Rs 101.40 crore for the quarter under review against the Rs 144.40 crore reported in the year-ago quarter.

However, the revenue from operations saw a massive jump of 60% YoY to Rs 3,423 crore from Rs 2,139.50 crore in the corresponding quarter of the previous fiscal year.

The EBITDA margins expanded to Rs 23% from 22% in Q1FY23.

The surge in revenue was led by a two-fold increase in the biosimilars business, accompanied by double-digit growth in its generics and research services segments.

Siddharth Mittal, CEO & Managing Director of Biocon, said, “The generics business delivered a healthy 15% year-on-year revenue growth, driven by growth in our formulations business in the US and new product launches. We also saw a volume increase in immunosuppressant APIs (Active Pharmaceutical Ingredients).”

Shreehas Tambe, CEO & Managing Director of Biocon Biologics- the biosimilar arm of the company, commented that the strong growth in the segment is driven by the acquisition of Viatris’ biosimilars business and the increase in market share for its products in the US and Europe.

Research and development investments in the quarter also rose by Rs 117 crore to Rs 315 crore this quarter, which the management believes will support future growth and advance the product pipeline for the company.

The shares of Biocon Ltd opened red and were down by 3%, but at 11:55 am, the shares were trading at Rs 260 or 0.54% below its previous close of Rs 261.40 on NSE.

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