Q4FY21 Result Update - Biocon Ltd - ICICI Direct

Q4FY21 revenues grew 16.3% YoY to Rs. 1839 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 stockpiling by customers in H1FY21. EBITDA margins improved 355 bps YoY to 23.7% mainly due to strong gross margins and lower R&D cost. EBITDA grew 36.8% YoY to Rs. 436 crore vs. I-direct estimate of Rs. 470 crore. Adjusted PAT grew 96.6% YoY to Rs. 243 crore. Delta vis-à-vis EBITDA was due to higher other income, which included Rs. 160 crore gain from fair valuation of Bicara Therapeutics.

Valuation & Outlook

For Q4FY21, while topline was below estimates amid lower than expected Biosimilars ramp-up, EBITDA margins and bottomline were higher due to lower-than-expected R&D expenses and higher other income. Due to operational, regulatory and commercial challenges amid Covid-19, its US$1 billion target for biosimilars by FY22 has been postponed. The management expects better topline growth in FY22 vs. FY21. Operationally, however, the company remains committed to accelerated spending on capex, R&D that is likely to push related expenses higher in the near term. Timely launches, ramp up of biosimilars in developed as well as EMs and Syngene's performances remain key levers for the company. We maintain HOLD and arrive at our revised target price of Rs. 400 (vs. Rs. 450 earlier) on an SoTP basis.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Biocon_Q4FY21.pdf

Shares of BIOCON LTD. was last trading in BSE at Rs.379.65 as compared to the previous close of Rs. 393.95. The total number of shares traded during the day was 588488 in over 14513 trades.

The stock hit an intraday high of Rs. 392 and intraday low of 378. The net turnover during the day was Rs. 225401077.

Source : Equity Bulls

Keywords