Biocon Ltd reported a 56.8% year-on-year decline in its consolidated net profit for the fourth quarter ended March 31, 2024, at Rs 198.6 crore, compared to Rs 459.5 crore in the same period last year. The Bengaluru-based biotechnology company attributed the drop to higher expenses and a challenging business environment.
Revenue and Expenses
The company's revenue from operations grew marginally by 2.7% to Rs 3,830.5 crore during the quarter, up from Rs 3,729.3 crore in the corresponding quarter of the previous fiscal. However, total expenses rose 10.6% to Rs 3,560.8 crore, primarily due to an increase in raw material costs and employee benefit expenses.
Segment Performance
Biocon's core business segments showed mixed results. The biologics segment revenue increased by 9% to Rs 1,450 crore, driven by higher sales of insulin and biosimilars. The research services segment reported a 5% decline in revenue to Rs 780 crore, impacted by lower client spending. The generics segment revenue remained flat at Rs 1,200 crore.
Full-Year Performance
For the full fiscal year 2023-24, Biocon's net profit fell 34.5% to Rs 1,020 crore, compared to Rs 1,558 crore in the previous year. Annual revenue increased by 8.2% to Rs 15,200 crore. The company's board recommended a final dividend of Rs 2 per share for the fiscal year.
Management Commentary
Biocon Chairperson Kiran Mazumdar-Shaw said, "Our Q4 performance was impacted by a challenging macroeconomic environment and higher input costs. Despite these headwinds, we remain focused on our long-term growth strategy, including expanding our biosimilar portfolio and strengthening our research pipeline."
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for the quarter stood at 22.4%, down from 27.8% in the same quarter last year. Biocon's debt-to-equity ratio remained stable at 0.6x as of March 31, 2024.
Outlook
Biocon expects gradual improvement in its financial performance in the coming quarters, driven by new product launches and cost optimization measures. The company is also focusing on expanding its presence in emerging markets and advancing its biosimilar pipeline for global markets.
Shares of Biocon closed 2.3% lower on the BSE at Rs 285.65 apiece, following the announcement of the results.
