Biocon fell 5.60% to Rs 243.80 after consolidated net profit fell 39.2% to Rs 215.70 crore on a 19% increase in net sales to Rs 1572.20 crore in Q2 September 2019 over Q2 September 2018.
The result was announced after market hours yesterday, 23 October 2019.The company's net profit was impacted by an increase in R&D expenses for enabling portfolio expansion and higher employee costs to support independent management of Small Molecules, Biocon Biologics and Novel Molecules businesses under new organizational structure.
Net R&D expenses for the quarter at Rs 104 crore was up by 36% (vs. Rs 77 crore in Q2 September 2018).
Gross R&D expenses were Rs 123 crore, up 39%, (vs. Rs 88 crore in Q2 September 2018) corresponding to 11% of our revenue (excluding Syngene).
The consolidated EBITDA rose by 12% to Rs 441 crore in Q2 September 2019 as against an EBITDA of Rs 394 crore in Q2 September 2018. EBITDA margin stood at 27% in Q2 September 2019 as against 29% in Q2 September 2018.
EBITDA margin was impacted due to an increase in employee benefit expenses and other costs including higher marketing and profit share expenses. However, the core EBITDA margin, maintained at 33%, was at the same level as last year.
During the quarter, Biocon extended its footprint to China, the world's 2nd largest pharma market, licensed out three generic formulations products to China Medical System Holdings.
Meanwhile, the S&P BSE Sensex was up 1 points or 0.00% to 39060.1.
On the BSE, 3.02 lakh shares were traded in the counter so far compared with average daily volumes of 1.84 lakh shares in the past two weeks. The stock hit a high of Rs 250.4 and a low of Rs 243.3 so far during the day.
The stock hit a 52-week high of Rs 341.43 on 25 Jan 2019. The stock hit a 52-week low of Rs 211.3 on 20 Aug 2019.
Biocon is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune. It is a leading global player for APIs including statins, immunosuppressants and specialty molecules.
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