Biocon's HIFY07 delivers Robust Performance & Growing Profits

Revenues at Rs: 463 crores. EBITDA at Rs: 122 crores. PAT at Rs 84 crores

Bangalore, October 18th, 2006

Biocon Limited today announced its financial performance for the half year ended September 30th, 2006.

Note: The discussions in this release reflect the audited financial performance of Biocon Limited based on Indian GAAP on a consolidated basis. This considers the financial performance of Biocon Limited, its wholly owned subsidiaries Syngene International Private Limited and Clinigene International Private Limited and its 51% joint venture Biocon Biopharmaceuticals Private Limited.

PERFORMANCE HIGHLIGHTS

- Consolidated Sales grew by 23% over the same period in the previous year. Operating profits (EBITDA) grew by 9%. Profit after Tax stood at Rs: 84 crores while PAT margins were at a healthy 18 %.
- All business segments achieved good growth. Biopharmaceuticals and Research services performed particularly strongly.
- Research Services continued to deliver excellent growth in profitability in excess of 50%.
- Technology and licensing revenues contributed significantly to H1 financials.
- Biocon’s discovery led Diabetes and Oncology research programs continue to make good progress.
- Dedicated Sales Force established for Oncology Products.
- 100% increase in R&D expenditure to Rs: 16 crores.
- Our path breaking monoclonal antibody, BIOMAb EGFR® was granted regulatory marketing and manufacturing approval and was launched into the Indian market in September.

Outlook

Commenting on the results, Kiran Mazumdar-Shaw, Chairman & Managing Director, Biocon Limited , said: "I am pleased that we have delivered robust and growing profits at a time when we are increasingly investing in our discovery led research programs as they move up the development pathway. We are encouraged by the progress being made on the research & development front. We believe that we are creating powerful innovation platforms for our future. We continue to build domain knowledge in Oncology, Diabetes and Inflammatory Disease.

We are confident that we will deliver current levels of profitability in the quarters ahead in spite of increased R&D investment and fixed costs at Biocon Park. Technology & licensing revenues have contributed significantly to our profitability and are an indication of the success of our innovation led initiatives. This will be an integral part of our business going forward, as we build high value Intellectual Property.

Source : Equity Bulls

Keywords