 "Biocon dips post September quarter results")
Biocon is trading lower by nearly 3% at Rs 468 on National Stock Exchange (NSE) in otherwise strong market after the company reported a flat consolidated net profit of Rs 102 crore in September quarter, due to higher raw material and employee cost. The biotechnology company had profit of Rs 102 crore in the same quarter last fiscal.
Net sales of the company grew 2% at Rs 750 crore in September quarter against Rs 734 crore in the corresponding quarter last year.
EBITDA or operating margins contracted by 90 bps to 22.8% due to higher employee and raw material costs.
“The growth of our core biopharma business this quarter has been muted largely due to capacity constraints and geo-political challenges in the Middle East,” said Kiran Mazumdar-Shaw, chairman and managing director, Biocon.
The company said, the biopharma business continues to be impacted by various factors like geo-political challenges in terms of credit risk in the MENA region, reduced offtake of specialty API, and capacity constraints, affecting the growth of this business. The outlook for the biopharma business remains challenging for the remaining part of this fiscal.
The stock opened at Rs 480 and hit a low of Rs 465 on NSE. A combined 350,000 shares changed hands on the counter so far on NSE and BSE. The CNX Nifty was up nearly 1% at 7,987 points at 1005 hours.
Net sales of the company grew 2% at Rs 750 crore in September quarter against Rs 734 crore in the corresponding quarter last year.
EBITDA or operating margins contracted by 90 bps to 22.8% due to higher employee and raw material costs.
“The growth of our core biopharma business this quarter has been muted largely due to capacity constraints and geo-political challenges in the Middle East,” said Kiran Mazumdar-Shaw, chairman and managing director, Biocon.
The company said, the biopharma business continues to be impacted by various factors like geo-political challenges in terms of credit risk in the MENA region, reduced offtake of specialty API, and capacity constraints, affecting the growth of this business. The outlook for the biopharma business remains challenging for the remaining part of this fiscal.
The stock opened at Rs 480 and hit a low of Rs 465 on NSE. A combined 350,000 shares changed hands on the counter so far on NSE and BSE. The CNX Nifty was up nearly 1% at 7,987 points at 1005 hours.