Biocon posted very good set of earnings for Q1FY20 with consolidated net profit going up 86% (YoY) at Rs.233 crore. Revenue showed a robust 25% growth at Rs.1490 crore, fueled by Biologics and Small Molecules business segments.
The quarter saw a 96% growth in its Biologics revenue at Rs.490 crore, led by the expansion of our geographical footprint and increased penetration of its products in key developed and emerging markets. Its small molecules revenue at Rs.480 crore was driven by steady API sales and a multi-fold growth in Generic Formulations.
EBITDA showed a 51% rise at Rs.462 crore and margins improved from 26% to 31%. Net R&D expenses for the quarter at Rs.79 crore was up by 78% (vs. Rs.44 crore in Q1FY19).
Revenue from Syngene, the R&D unit stood at Rs 421 crore driven by Discovery Services and Dedicated R&D Centre businesses. Overall this company reported a modest 4% growth. During the quarter, Syngene completed a U.S. FDA inspection for its Human Pharmacology Unit (HPU) in clinical development, making it the seventh successful FDA inspection without any observations. The Company is setting up a new research centre in Hyderabad to support its long term growth strategy.
The company is also setting up a Rs.600 crore greenfield project at Visakhapatnam and is expected to be operational over the next 3 years followed by commercialization based on regulatory approvals in major markets.
The markets have reacted positively but not exactly ecstatically, opening 5% higher at Rs.250.50 and hitting an intraday high at Rs.252, up 5.6%. Its 52-week high stands at Rs.359.18.