The Hindu Business Line : Biocon Q4 net up 14 pc

Biocon has posted a 14.2 per cent increase in net profit to Rs 48 crore during the fourth quarter of 2005-06 while its revenues grew 20.78 per cent to Rs 215 crore during the same period.

On sequential basis, net profit grew 9 per cent for the quarter ending March 2006 while revenues grew 7 per cent for the same period. The company has declared a dividend of Rs 2.50 per share, an increase of 10 per cent to 50 per cent over the previous year. Earnings per share was Rs 17.40 for 2005-06.

Announcing the results, the newly appointed Chief Operating Officer, Mr Arun Chandavarkar, told newspersons on Thursday that for the entire fiscal (2005-06), the bio-tech major's net profit declined 12 per cent to Rs 174 crore while its total income grew 9 per cent to Rs 793 crore compared with the same period last year.

Biocon's Chief Financial Officer, Mr Murali Krishnan, attributed the decline in net profit for 2005-06 to a dip in operating margin by 2 per cent to 30 per cent, impact on tax and depreciation.

Challenging

Biocon's Chairman and Managing Director, Ms Kiran Mazumdar-Shaw, said the current year will continue to be challenging for the company. "The year ahead will continue to be challenging due to uncertainties in market conditions and the impact of depreciation at our new facilities at Biocon Park."

Ms Mazumdar-Shaw said the research and development expenditure and strategic investment grew 76 per cent to Rs 76 crore. She said the company is planning to take insulin which is a generic product into regulated markets like the US and Europe. She said in the short term, the company will rely on generic products. "We expect insulin to gain market share both in India and overseas markets. This, together with branded formulations and research services, will drive growth," she said. She said Biocon is rapidly transforming itself from a generics manufacturer into an innovator company that is developing a robust pipeline of new molecules.

She said the recent acquisition of Nobex portfolio has increased the company's IP assets both in terms of patents as well as proprietary technologies, which will play a key role in the company's innovation strategy for the future.

"The year ahead is also expected to see us entering the oncology market with our antibody product, Biomeb-EGFR for the treatment of head and neck cancers," she said.

During 2005-06, revenues from the biopharmaceuticals and enzymes business grew 6 per cent to Rs 688 crore and contributed 87 per cent to its operating revenues.

Revenues from research services grew 52 per cent to Rs 100 crore contributing 13 per cent to operating revenues during 2005-06.

At the BSE, Biocon shares, which opened at Rs 451.90, closed at Rs 452.75 on Thursday.