Biocon reported 56.74% decline in consolidated net profit to Rs 135.5 crore in Q4 FY24 as compared with Rs 313.2 crore posted in Q4 FY23.
Revenue from operations rose 3.79% year on year (YoY) to Rs 3,917.1 crore in the quarter ended 31 March 2024.Profit before exceptional items and tax decreased 34.39% to Rs 327.8 crore in fourth quarter of FY24 as against Rs 499.6 crore in same quarter last year.
The company reported an exceptional loss of 8.8 crore in March 2024 quarter and exceptional loss of Rs 3 crore in March 2023 quarter.
For Q4 FY24, EBITDA slipped 16% YoY Rs 964 crore while EBITDA margin reduced to 24% as against 29% in same quarter previous fiscal.
Net R&D investments for the quarter stood at Rs 246 crore, representing 8% of revenue exSyngene.
On segmental front, revenue from Biosimilars stood at Rs 2,358 crore in March 2024 quarter, up 12% YoY as compared to 2,102 crore posted in Q4 FY23.
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In Q4 FY24, revenue from research services (Syngene) business fell 8% YoY to Rs 917 crore. The revenue was impacted due to reduced demand for research and development services within U.S. biotech stemming from a difficult funding environment.
Income from generics decreased 3% YoY to Rs 719 crore in fourth quarter of FY24. The Generics business saw several operational successes during the quarter especially in the formulations business which offset the impact of a muted performance in the APIs business.
Kiran Mazumdar Shaw, executive chairperson of Biocon and Biocon Biologics, said, Q4 FY24 performance was strongly led by Biologics that delivered the promised billion-dollar annual revenue milestone marking the successful transition of the Biosimilars acquisition from Viatris. Increased market shares of key products in the U.S., Europe and Emerging Markets coupled with significant volumes growth were the highlights of the Biosimilars business this quarter.
The growth was largely driven by Biosimilars which grew 58% to Rs 8,824 crore. 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.
Siddharth Mittal, CEO & managing director, Biocon, said, We concluded FY24 with the Generics business posting a modest revenue growth. Generic Formulations reported a healthy 36% growth, as our products, particularly statins and immunosuppressants, gained traction across multiple geographies. This was offset by a degrowth in APIs on account of pricing pressure the business encountered, which impacted demand.
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.
Shreehas Tambe, CEO & managing director, Biocon Biologics, said, During the year, we reduced our acquisition debt. We also entered into a long-term strategic collaboration to distribute our products in India while retaining exclusive supply rights. FY24 has been a transformational year as we leverage our expanded global reach to address patient needs globally.
Jonathan Hunt, CEO & managing director, Syngene, said, Despite the reduced demand for research and development services within the U.S. biotech sector, stemming from a difficult funding environment, we delivered a 9% growth for the full year. This resilience is the result of our broad operating span and the investments made to establish our development and manufacturing divisions with biologics, in particular, delivering a strong performance throughout the year.
Meanwhile, the board recommended a dividend of Rs 0.50 per share for the financial year 2023-24. The record date has been fixed as 5 July 2024 and it will be paid on or before 6 September 2024.
On a full year basis, the companys consolidated net profit surged 121% to Rs 1,022.5 crore on 32.05% rise in revenue from operations to Rs 14,755.7 crore in FY24 over FY23.
Biocon is an innovation led global biopharmaceuticals company, engaged in the production of therapies for chronic conditions like diabetes, cancer and autoimmune. It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as Generic Formulations in the US, Europe & key emerging markets. It also has a pipeline of promising novel assets in immunotherapy under development.
Shares of Biocon rose 0.78% to Rs 308.30 on the BSE.
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