The Hindu Business Line : Biocon posts 27 pc rise in Q4 net profit

Dr Arun Chandavarkar (left), Chief Operating Officer, Biocon, and Mr Neville Bain, Director, at a press conference near Bangalore on Thursday. - G.R.N. Somashekar

Bangalore April 19 Biotechnology major Biocon posted a consolidated income of Rs 990 crore with 25 per cent growth year on year for fiscal 2006-07. Its net profit of Rs 200 crore was 15 per cent increase year on year.

The board has recommended dividend of Rs 3 per share (60 per cent.)

The fourth-quarter revenue (including from subsidiaries Syngene, Clinigene and Biocon Biopharmaceuticals) rose 30 per cent to Rs 279 crore (Rs 215 crore) and profit after tax grew 27 per cent at nearly Rs 61 crore (Rs 48 crore) over fiscal 2005-06.

On Thursday, the scrip closed almost three per cent lower at Rs 509 on the BSE and Rs 508.9 on the NSE.

The group's growth was largely driven by biopharmaceuticals and enzymes, which contributed Rs 823 crore or 83 per cent of the revenue. Research services and the recently launched cancer and nephrology drugs did well. Biopharma generated sales of Rs 728 crore; enzymes Rs 95 crore and contract research Rs 163 crore.

The branded formulations strategy has paid dividends; Biocon will go after the European and US markets with insulin, GCSF and other biosimilars even as it has started registering them in many countries, Biocon's CMD, Ms Kiran Mazumdar-Shaw, said in a conference call on Thursday.

Research licensing revenue grew 63 per cent: of the Rs 163-crore research income from services and licensing, Rs 140 crore came from the R&D arm Syngene International and the contract services subsidiary Clinigene International. "Our innovation-led research programmes ... will continue to deliver attractive shareholder returns in the coming years," she said.

R&D revenue expenditure rose 86 per cent to Rs 38 crore. Dr Arun Chandavarkar, COO, said, "In the year ahead, we will continue to make significant investments to progress our innovation pipeline... " According to the Syngene COO, Dr Goutam Das, the research partnership between Syngene and US drug major Bristol-Myers Squibb is expected to give revenue worth $25 million by 2010, when the facility will have hired 400 scientists.

Biocon's standalone fourth-quarter net profit showed a minuscule year-on-year dip of 0.2 per cent, at Rs 47.29 crore (Rs 47.5 crore). Sales rose over 9 per cent year on year, or Rs 233.59 crore (Rs 214.08 crore). Sequentially, the net profit grew 45.8 per cent over the profit of Rs 32.43 crore for January-March 2007. The board has recommended dividend of Rs 3 per share (60 per cent.)