Biocon shares gain on strong Q1 results
The shares of BIOCON rallied over 4 per cent to intraday high of Rs 478 on Friday (24th July) in the BSE, after the company reported strong (consolidated) results for the quarter ended 30th June 2015, which was declared on Thursday (23rdJuly) after-market hours. BIOCON reported 23 per cent year on year increase in net profit to reach Rs 126.24 crore in Q1FY16, which was Rs 102.91 in Q1FY15.
BIOCON Asia's premier biopharmaceuticals company reported a strong growth of 14.84 per cent in total revenue, which stood at Rs 832.99 crore in Q1FY16 as compared to Rs 725.32 in Q1FY15. The strong performance is backed by a combination of product sales and monetisation of Research & Development (R&D) assets through licensing. Its other operating income includes Rs 44.63 crore towards one time compensation from a customer to absolve the customer from capacity reservation fees.
BIOCON's total expenditure increased by 12.59 per cent to touch Rs 620.81 crore in Q1FY16 as compared to same period of previous financial year. Its total expenditure increased mainly due to a 60 per cent growth in R&D expenses and 12.11 per cent growth in the cost of material consumed.
BIOCON's Earnings before interest, tax, depreciation and amortization (EBITDA) boosted by 21.98 per cent to reach Rs 212.18 crore and margin expanded by 149 basis points to 25.47 per cent in Q1FY16 yearly basis. Its profit after tax and minority interest (PAT) margin expanded by 97 basis points to 15.16 per cent in Q1FY16 on yearly basis.
The results declared just before an Initial Public Offering (IPO) of Syngene International (SIL), which is the contract research organization (CRO) and a subsidiary of BIOCON. SIL played an important role in boosting contract research segment revenue and profitability of BIOCON, in the past few years. BIOCON's contract research segment revenue rose by 30.75 per cent to Rs 233.55 crore in Q1FY16 as compared to Rs 178.62 crore in Q1FY15.
BIOCON is committed to reduce therapy costs of chronic diseases like diabetes, cancer and autoimmune diseases by leveraging India's cost advantage to deliver affordable healthcare solutions to patients, partners and healthcare systems across the globe.