Biotech major Biocon Ltd., reported, on an Indian GAAP basis, more than two-fold increase in its consolidated net profit for the fourth quarter, helped by one-time gain. The company recommended a special dividend, besides a normal final dividend, for the fiscal year.
Consolidated Results
The Bangalore-based company's fourth-quarter consolidated net profit, after share of associates and minority interest, rose more than two-fold to Rs.248.71 crore or Rs.12.56 per share from the Rs.97.80 crore or Rs.4.94 per share in the fourth-quarter of 2012.
Results for the quarter included a one-time gain of Rs.201.91 crore, under exceptional item, towards an upfront payment received from Mylan, as both the companies expanded the scope of partnership to incorporate generic insulin analogs.
Its quarterly net income from 'operations and other operating income' rose by four percent to Rs.637.08 crore from the Rs.610.20 crore in the year-ago quarter, while other income stood at Rs.11.85 crore, compared with Rs.12.22 crore in Q4FY12.
For the quarter, income from the 'Pharma' segment declined by six percent to Rs.468.38 crore from the Rs.496.78 crore in the corresponding period last year, while that from 'Contract Research' was Rs.173.67 core, up by 34 percent from the Rs.129.33 crore in the prior-year quarter.
For the fiscal year, the company's consolidated net profit, after share of associates and minority interest, rose by 50 percent to Rs.508.82 crore from last year's Rs.338.40 crore. Total income, including 'other operating income,' during the year was Rs.2,485.30 crore, up by 19 percent from the Rs.2,086.52 crore a year ago.
Stand-alone Results
Biocon's fourth-quarter stand-alone net profit was down by 39 percent at Rs.38.29 crore or Re.1.91 per share, compared with Rs.62.30 crore or Rs.3.15 per share in the year-ago quarter. Total income, including 'other operating income,' rose by ten percent to Rs.475.79 crore from the Rs.432.60 crore in the corresponding quarter last year.
For the fiscal year, the company posted a stand-alone net profit of Rs.275.70 crore, higher by seven percent than the Rs.255.50 crore in the previous year. Total income, including 'other operating income,' stood at Rs.1,938.00 crore, up by 25 percent from last year's Rs.1,555.85 crore.
Its Board recommended a final dividend of 100 percent or Rs.5.00 and a special dividend of 50 percent or Rs.2.50 per equity share of Rs.5 each for the fiscal year 2013, pursuant to the re-licensing of company's insulin analogs portfolio, as its on-going commitment to building incremental shareholder value. The dividend will be paid within 30 days from the date of shareholders' approval at the ensuing AGM.
Outlook
The company said the emphasis in FY14 would be on the execution of development plans for the generic biologics portfolio with a firm leash on costs and portfolio margins. It expects its R&D costs to increase in line with the progress being made by its generic biologics and novel molecules. The company intends to further optimize its small molecules portfolio to ensure healthy margins. Its Malaysian facility continues to advance and it poised to come on stream by FY15, helping Biocon transform into a leading generic insulin player.
Company Chairman & Managing Director Kiran Mazumdar-Shaw said, "We are pleased to close fiscal 2013 on a very strong note. The key contributors to growth this fiscal have been Research Services, Branded Formulations and our growing biosimilar business, led by generic insulins. Biocon's Insulin franchise continues to garner market share across India and emerging markets and now accounts for more than ten percent of our sales. This quarter saw us enhance our partnership with Mylan through endorses the intrinsic value of this asset and significantly reduces our burden of development costs involved in global commercialization."
She added, "Looking ahead, we intent to sustain our growth momentum by optimizing our small molecules portfolio, further expanding our insulin footprint in emerging markets, and continuing to deliver robust growth in Branded Formulations and Research Services."
At the BSE, Biocon shares are currently trading at Rs.280.90, down Rs.8.40 or 2.90 percent on a volume of around 62,000 shares.
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