Biocon Q4 Net Profit Slides 56% To Rs 135.5 Crore; Dividend Declared

Biocon, a renowned pharmaceutical player, announced on Thursday a consolidated net profit of Rs 135.5 crore for the fourth quarter of FY24, reflecting a substantial 56% decline compared to the same period last year.

In the corresponding quarter of the previous year, the company reported a net profit of Rs 313.2 crore. Despite the drop in net profit, Biocon's revenue from operations saw a modest increase of 3% to Rs 3917 crore, compared to Rs 3774 crore in the same period last year.

The company's consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 8% year-on-year to Rs 916 crore. Consequently, the consolidated EBITDA margin stood at 23.4%, down from 26.4% in the same period last year.

"The Biocon Group has strengthened business operations, expanded global reach, and is now increasingly well positioned to deliver a new phase of growth spanning biosimilars, GLP-1 peptides, and CDMO services." Kiran Mazumdar-Shaw, Chairperson, Biocon, said.

The deal Biocon had with its partnership partner, Viatris Inc., was a noteworthy milestone. In an effort to build a fully integrated worldwide biosimilars enterprise, Biocon Biologics signed a final agreement to purchase Viatris' biosimilars business on February 27, 2022.

The Board of Directors has recommended a final dividend of Rs 0.50 per share at the rate of 10% of the face value of the share for the financial year ended March 31, 2024.

"Our focus in FY25 will be directed towards launching new products and expanding our geographic reach through a direct presence and strategic partnerships. We will continue to focus on multiple cost-improvement initiatives. We also intend to build upon our initial regulatory success in our peptide and GLP-1-focused pipeline in strategic markets,Siddharth Mittal, CEO of Biocon, said in a statement.

The total consideration for this acquisition amounted to $3.335 billion, including cash up to $2.335 billion and Compulsorily Convertible Preference Shares in Biocon Biologics worth $1 billion.

The acquired business has been consolidated in Biocon's financial results, effective November 29, 2022, the consummation date. Based on its assessment of the final purchase price allocation, the group recorded goodwill amounting to Rs. 160,940 million.

Established in 1978, Biocon has emerged as one of India's leading biopharmaceutical companies. The company offers fully integrated biopharmaceutical solutions, covering the entire spectrum from discovery to development and commercialization. Its revenue streams are diversified, encompassing biosimilars (including branded formulations), contract research, and small molecules and APIs.

Biocon is dedicated to its goal of offering cutting-edge and easily accessible healthcare solutions, even in the face of obstacles brought about by the pandemic and the changing landscape of the pharmaceutical sector. To spur growth and provide value to its stakeholders, the company keeps concentrating on R&D, strategic alliances, and operational effectiveness.