Biocon Ltd on Thursday reported a 17 per cent decline in consolidated net profit for October-December quarter of the ongoing financial year at Rs 169 crore. The company had posted a net profit of Rs 203 crore in the year-ago quarter.
However, its revenue rose 7 per cent to Rs 1,879 crore during the quarter ended December, led by double-digit growth in research services and biosimilars business segments.
The biosimilars and research services segment posted 11 per cent and 13 per cent growth, respectively, in their income during the quarter, while the generics business recorded a 3 per cent decline.
"The generics business experienced a subdued performance in Q3 as demand moderated following a period of advance buying by customers in the first half of this fiscal, apprehending supply disruptions in the wake of the pandemic. Growth was also impacted by delays in regulatory approvals of certain products that required physical inspection of our facilities, due to covid related travel restrictions," Biocon MD and CEO Siddharth Mittal said.
As the company expands its portfolio and enters new geography, new product approvals will be a crucial determinant of growth for the segment, he added.
The biopharmaceutical company's earning before interest, tax, depreciation and amortisation (EBITDA) declined 11 per cent to Rs 427 crore during the quarter, while its core EBITDA margins stood at 31 per cent.
"The two recent investments of USD 225 million in Biocon Biologics by GoldmanSachs and ADQi endorse the value creation of our biosimilars business. These investments augur well for our business and will enable us to invest in expanding our research and manufacturing capacities across segments," Biocon Executive Chairperson Kiran Mazumdar-Shaw said.
Biocon Biologics Ltd is a subsidiary of Biocon Ltd and is uniquely positioned as a fully integrated 'pure play' biosimilars organisation in the world.
Shaw said Biocon continues to face headwinds across operational, regulatory and commercial functions which have been deterrents to its planned market expansion. However, it expects normalisation by next fiscal.
The company also said that Christiane Hamacher, Managing Director of Biocon Biologics, has stepped down and has ceased to be a member of its board. "This decision was taken due to professional differences with the Chairperson on strategic priorities and vision for the company," it said.
Arun Chandavarkar, who is a member of the board of Biocon Biologics, will take over the mantle of Managing Director, effective Jan 21, 2021, for a period of up to two years, while Shaw will be the Executive Chairperson of Biocon Biologics, effective from Jan 21, 2021 until March 31, 2022.
The company also said that Peter Piot, Director of the London School of Hygiene & Tropical Medicine and the Handa Professor of Global Health, has joined the board of Biocon Biologics.