Biocon Q2 Results: Net profit drops 66% YoY to Rs 47 cr due to exceptional items

Biocon on Monday reported a 66% year-on-year (YoY) drop in net profit to Rs 47 crore during Q2FY23 due to exceptional items related to adoption of new tax regime of 25% and net of tax of ₹14 crore towards the Viatris deal.

The profit before exceptional items stood at Rs 168 crore, on the back of revenue growth across its biosimilars, generics and research services business units.

The drug maker reported Rs 188 crore net profit in the corresponding period of previous year. Total revenues rose 23% YoY for Q2FY23 at Rs 2,384 crore compared to Rs 1,945 crore in Q2FY22.

The core earnings before interest, tax, depreciation and amortization (EBITDA) rose 34% YoY to Rs 816 crore in Q2FY23 and core EBITDA margins rose 200 basis points to 35%.

Biocon Biologics share, which constitutes 42% of revenues, reported 34% YoY growth to Rs Rs 977 crore in Q2FY23, while the generic business rose 18% to Rs 623 crore. Research services rose 26% YoY to Rs 768 crore.

The R&D spends increased by 52% YoY this quarter to Rs 252 crore as Biocon advances in the biosimilar development pipeline.

“We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23," said Kiran Mazumdar-Shaw, executive chairperson of Biocon.

"Enhanced capacities and new launches will drive growth for our API and generic formulations business, while continued business momentum should help Syngene achieve its guidance for the full year," Mazumdar-Shaw added.

Shaw said the company has secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly

Biocon's board has approved a fund raise of $525 million on private placement basis, which include up to $250 million through the issue of redeemable, non-convertible debentures and $275 million via issue of commercial paper.