Biocon declined 1.27% to Rs 331.05 after consolidated net profit declined 42.3% to Rs 123.40 crore on a 3.4% rise in net sales to Rs 1581 crore in Q4 March 2020 over Q4 March 2019.
Biocon's consolidated EBITDA stood at Rs 382 crore in Q4 March 2020, declining 11% from Rs 431 crore in the same period last year. EBITDA margin slipped to 23% in Q4 March 2020 from 28% reported in Q4 March 2019.Research & development expenses jumped 36% to Rs 125 crore in Q4 March 2020 over Q4 March 2019.
The small molecules business reported a revenue growth of 15% to Rs 541 crore in Q4 March 2020 led by steady API sales and strong growth in Generic Formulations. While the API business faced challenges in the Latin America region it continued to do well in India, APAC and EU driven by its statins and immunosuppressants portfolio.
The Biologics segment reported a decline of 21% to Rs 357 crore in Q4 March 2020 after reporting three consecutive quarters of robust performance. The company said decline in segment is due to operational challenges related to COVID-19 and less than expected contribution from our partners. Biocon said it expects the business to normalize by Q2 September 2020 as it continues to pursue growth through strong biosimilars portfolio in many markets across the globe.
Biocon's Branded Formulations business continued to face challenges. For Q4 March 2020, business revenue stood at Rs 117 crore posting a decline of 12% over Q4 March 2019. The company said both supply side and demand side challenges on account of the nationwide lockdown in India impacted business. Biocon clarified that UAE based joint venture entity, Neo Biocon, faced significant business challenges in the last fiscal resulting from a price reduction mandated by the Ministry of Health, UAE. The company said that the joint venture partner came under investigation for governance issues which is likely to have a reputational impact on the JV. Subsequently, Biocon has decided to to wind up the JV entity.
Commenting on the results, Kiran Mazumdar-Shaw, Executive Chairperson, stated: Q4FY20 witnessed a muted growth of 6% with revenues at Rs 1,644 crore due to operational challenges including one-time COVID-19 related impact on our Biologics business. Small Molecules and Research Services businesses, however, delivered robust growth of 15% and 14%, respectively. On a full-year basis, we 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. For FY20, EBITDA at Rs 1,765 Crore reported a growth of 15%. Net Profit, before exceptional item, at Rs 760 Crore reported a 4% growth. Core margins were strong at 33% with EBITDA margin of 27% and Net Profit margin of 11%.
Biocon's consolidated net profit fell 6.98% to Rs 698.63 crore on a 15.5% increase in net sales to Rs 6,367.20 crore in the year ended March 2020 (FY20) over the the year ended March 2019 (FY19).
Biocon is an innovation-led global bio-pharmaceuticals company. Biocon 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 and Europe
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