Shares of Biocon Limited fell 4.11% to Rs 321.50 on the BSE on Friday after the biotechnology major’s net profit declined 42.2% in the fourth quarter of this fiscal year compared to the same period in the previous.
At 10:52am, the stock was down 2.77% as compared to 0.92% fall in S&P BSE Sensex.
Biocon’s net profit declined 42% to Rs 123 crore in the fourth quarter of 2019-20 following muted revenue growth due to Covid-19 related impact on its biologics business, the company said.
The Bengaluru-headquartered biopharmaceuticals company said Q4FY20 revenue was up 6% at Rs 1,644 crore.
According to a company statement, FY20 revenue grew 15% at Rs 6,529 crore, while net profit (before exceptional item) rose four per cent to Rs 760 crore.
Kiran Mazumdar-Shaw, Biocon’s executive chairperson, said Q4FY20 witnessed a muted growth because of operational challenges, including one-time Covid-19 related impact, on the company’s biologics business.
Small molecules and research services businesses, however, delivered robust growth of 15% and 14%, respectively. Small molecules business crossed an annual revenue milestone of Rs 2,000 crore for the first time in 2019-20.
On a full-year basis, the company reported a revenue growth of 15% led by a strong performance by biologics which grew by 29%, small molecules by 18% and research services by 10%.
“We believe that the Biologics business will recover in Q1FY21 and fully normalise from Q2FY21,” Mazumdar-Shaw said.
For FY20, core margins were strong at 33% with an EBITDA margin of 27% and the net profit margin of 11%, the company said.
