Biocon - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 391, Market Cap - Rs. 46914 crore)

Biocon posted below par numbers for Q4FY21. While the topline was below estimates due to lower than expected Biosimilars ramp-up, EBITDA margins and bottomline was higher due to lower than expected R&D expenses and higher other income.

Q4FY21 earnings summary

- Revenues grew 16.3% YoY to Rs. 1839 crore (I-direct estimate: Rs. 2089 crore). Biosimilars grew 53.2% YoY to Rs. 664 crore due to low base effect. Research Services segment grew 8.4% YoY at Rs. 659 crore. Generic sales grew 2.7% YoY to Rs. 578 crore due to pricing pressure and owing to stockpiling by customers in H1FY21

- EBITDA margins improved 355 bps YoY to 23.7% (I-direct estimate: 22.5%) mainly due to strong gross margins (up 491 bps YoY to 68.7%) and lower R&D cost. EBITDA grew 36.8% YoY to Rs. 436 crore as against I-direct estimate of Rs. 470 crore

- Adjusted Net profit grew 96.6% YoY to Rs. 243 crore (I-direct estimate: Rs. 188 crore). Delta vis-à-vis EBITDA was due to higher other income which included Rs. 160 crore gain from fair valuation of Bicara Therapeutics

- Timely launches and ramp up of biosimilars in the developed as well as emerging markets and Syngene's performances remain key levers for the company. We will come out with an update post discussion with the management.

Shares of BIOCON LTD. was last trading in BSE at Rs.390.95 as compared to the previous close of Rs. 398.2. The total number of shares traded during the day was 480935 in over 9687 trades.

The stock hit an intraday high of Rs. 399.8 and intraday low of 387.6. The net turnover during the day was Rs. 188187174.

Source : Equity Bulls

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