Biocon shares fall over 9% after Q3 profit dips 19%

Updated : January 22, 2021 11:58 AM IST

The pharma major reported a 19 percent fall in consolidated net profit YoY at Rs 186.6 crore for the third quarter of fiscal 2021.

The share price of Biocon Ltd plunged more than 9 percent after the company’s December quarter earnings failed to meet Street estimates with the net profit and operating income declining.

The pharma major reported a 19 percent fall in consolidated net profit YoY at Rs 186.6 crore for the third quarter of fiscal 2021 as compared to Rs 230.3 crore in the same period last fiscal. CNBC-TV18 analysts' poll had estimated a net profit of Rs 216 crore.

The company’s consolidated revenue from operations during the quarter rose by 7.8 percent to Rs 1,851 crore from Rs 1,716.8 crore, YoY. The revenue was lower than the estimated Rs 1,915.1 crore.

On the operational front, EBITDA declined 10.1 percent to Rs 399.5 crore from Rs 444.2 percent, while EBITDA margin contracted by 430 bps to 21.6 percent from 25.9 percent, YoY.

“2020 has been one of the most challenging years for the world with an unprecedented pandemic impact on the global economy. We continue to face headwinds across operational, regulatory and commercial functions which have been deterrents to our planned market expansion. However, we expect normalization by next fiscal,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

The company's consolidated revenue growth was led by a 13 percent rise in research services and 11 percent in biosimilar business segments, she added.

Biocon’s generics business reported a 3 percent fall in the December quarter to Rs 561 crore as compared to Rs 576 crore, YoY.

The stock price declined as much as 9.61 percent to Rs 399.45 apiece on the BSE. At 11:15 am, the shares were trading 9.10 percent lower at Rs 401.75 apiece as compared to a 0.71 percent fall in the benchmark Sensex.

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Published : January 22, 2021 11:58 AM IST