Biocon profit falls again, down 28% to Rs 149 crore in Q1

BENGALURU: Biocon total revenue in the first quarter rose 14% to Rs 1,690 crore, but net profit dropped 28% to Rs 149 crore due to higher R&D spend, lower profit share in the biosimilar business and less profit from its research arm. Profit is falling for the second consecutive quarter.
The operating margin fell 500 basis points to 26%. Gross R&D spending was up 29% to Rs 142 crore.“The research services business reported flat revenue growth at Rs 422 crore due to slowdown of operations impacted by the Covid-19 crisis,” said executive chairperson Kiran Mazumdar-Shaw.
The generics business reported a revenue growth of 16% to Rs 599 crore, helped by high demand in the US. It was also aided by the API (active pharmaceutical ingredient) business, which saw a higher than normal demand for certain key APIs such as statins and immunosuppressants.
The biosimilars segment was up 19% to Rs 692 crore due to higher demand for the products in US and Europe, aided by a spillover of revenues from the previous quarter.
The company's share price fell on Friday, but it has been on a rise through the pandemic, in the belief that pharma companies like Biocon would be among the gainers from this health crisis.