The Hindu Business Line : Biocon net dips 16 pc in Q1

Biocon Ltd's net profit for the first quarter this fiscal took a 16.17 per cent dip, down to Rs 27.57 crore compared to Rs 32.89 crore for the corresponding quarter last year.

Net sales for the April-June 2006 quarter were up 18.45 per cent at Rs 183.7 crore (Rs 155.08 crore). Profit before tax year-on-year was lower at Rs 31.52 crore against Rs 39.01 crore for 2005-06. EPS for the quarter ended was Rs 2.86 (Rs 3.44).

Consolidated PAT remained at Rs 39 crore despite higher fixed costs on account of Biocon Park.

`Challenging year'

Biocon's CMD, Ms Kiran Mazumdar-Shaw, said the quarter, despite good profitability, was loaded with a forex loss of Rs 3 crore, lower but stabilised statin prices and a 50 per cent increase in R&D spend. "The year ahead will continue to be challenging due to market conditions and the impact of depreciation at our new facilities at Biocon Park. The new growth drivers viz. insulin, immuno-suppressants, branded formulations and monoclonal antibodies are building the bio-pharmaceuticals business in a more robust manner and reducing the dependence on statins."

Consolidated sales, including for its subsidiaries Clinigene International and Syngene International, were at Rs 212 crore or a growth of 22 per cent compared to Rs 174 crore.

"This is despite delayed entry of (its cholesterol lowering statins) simvastatin and pravastatin into the US market on account of 180 days' exclusivity granted," the company said.