Operating profit margin has slumped from 24.40% to 22.11%, leading to 5.81% decline in operating profit to Rs 389.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 29.98% to 36.99%.   Purchase of finished goods cost rose from 2.09% to 2.57%.   Employee cost decreased from 23.65% to 22.95%.   Other expenses fell from 19.46% to 17.01%.   Preoperation capitalised expenses fell from 4.73% to 4.27%.   

Other income rose 157.92% to Rs 47.2 crore.  Provision for interest rose 59.20% to Rs 19.9 crore.  

Provision for depreciation rose 16.79% to Rs 194.8 crore.  

Profit before tax shrink 12.09% to Rs 221.80 crore.  Share of profit/loss was 1,458.33% lower at Rs -56.1 crore.  Provision for tax was expense of Rs 57.3 crore, compared to Rs 80.9 crore.  Effective tax rate was 34.58% compared to 32.53%.

Minority interest increased 30.43% to Rs 24.00 crore.  Net profit attributable to owners of the company decreased 43.51% to Rs 84.40 crore.  

Promoters' stake was 60.64% as of 30 June 2021 ,compared to 60.67% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Biocon has increased 13.37% to Rs 7143.1 crore.  Sales of Research service segment has gone up 8.57% to Rs 2,184.30 crore (accounting for 29.84% of total sales).  Sales of Generics segment has gone up 5.84% to Rs 2,335.90 crore (accounting for 31.91% of total sales).  Sales of Biosimilars segment has gone up 20.95% to Rs 2,800.20 crore (accounting for 38.25% of total sales).  Inter-segment sales came down from Rs 233.50 crore to Rs 214.60 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 2.48% to Rs 1,080.20 crore.  PBIT of Novel Biologics segment fell 80.40% to Rs -20.40 crore (accounting for -1.89% of total PBIT).  PBIT of Research service segment fell 2.56% to Rs 434.20 crore (accounting for 40.20% of total PBIT).  PBIT of Generics segment fell 10.99% to Rs 301.20 crore (accounting for 27.88% of total PBIT).  PBIT of Biosimilars segment fell 14.63% to Rs 365.20 crore (accounting for 33.81% of total PBIT).  

PBIT margin of Research service segment fell from 22.15% to 19.88%.  PBIT margin of Generics segment fell from 15.33% to 12.89%.  PBIT margin of Biosimilars segment fell from 18.48% to 13.04%.  Overall PBIT margin fell from 16.95% to 14.76%.  

Operating profit margin has slumped from 25.44% to 23.14%, leading to 3.10% rise in operating profit to Rs 1,652.80 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 32.38% to 32.69%.   Purchase of finished goods cost rose from 1.31% to 1.39%.   Employee cost increased from 22.44% to 23.42%.   Other expenses rose from 19.21% to 20.26%.   Preoperation capitalised expenses fell from 5.32% to 4.72%.   

Other income rose 57.68% to Rs 254.5 crore.  Provision for interest fell 11.09% to Rs 57.7 crore.  Loan funds rose to Rs 3,678.30 crore as of 31 March 2021 from Rs 1,979.70 crore as of 31 March 2020.  Inventories rose to Rs 1,866.60 crore as of 31 March 2021 from Rs 1,435.90 crore as of 31 March 2020.  Sundry debtors were lower at Rs 1,217.60 crore as of 31 March 2021 compared to Rs 1,223.70 crore as of 31 March 2020.  Cash and bank balance rose to Rs 2,015.40 crore as of 31 March 2021 from Rs 998.60 crore as of 31 March 2020.  Investments rose to Rs 1,951.90 crore as of 31 March 2021 from Rs 966.10 crore as of 31 March 2020 .  

Provision for depreciation rose 29.50% to Rs 715.1 crore.  Fixed assets declined from Rs 8,140.70 crore as of 31 March 2020 to Rs 7,964.10 crore as of 31 March 2021.  Intangible assets increased from Rs 26.40 crore to Rs 1,200.00 crore.  

Profit before tax shrink 1.12% to Rs 1,134.50 crore.  Share of profit/loss were nil in both the periods.  Extraordinary items were decreased to Rs 12.60 crore.  Provision for tax was expense of Rs 221.5 crore, compared to Rs 315.1 crore.  Effective tax rate was 20.75% compared to 25.94%.

Minority interest decreased 13.85% to Rs 105.70 crore.  Net profit attributable to owners of the company decreased 4.71% to Rs 740.50 crore.  

Equity capital stood at Rs 600.00 crore as of 31 March 2021 to Rs 600.00 crore as of 31 March 2020.  Per share face Value remained same at Rs 5.00.  

Promoters' stake was 60.67% as of 31 March 2021 ,compared to 60.67% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 1,159.70 crore for year ended March 2021 from Rs 1,283.10 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 1,746.30 crore, compared to Rs 1,836.50 crore during the year ended March 2020.  

Other Highlights

In Q1FY22, revenue from Biocon Biologics stood at Rs 758 Crore, up 10% YoY.

In Q1FY22, revenue from research services stood at Rs 595 Crore, up 41% YoY.

In Q1FY22, revenue from API's and genric formulation stood at Rs 486 Crore, down 22% YoY.

Company expanded its global footprint with entry into seven new markets.

Management Commentary: Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said: "Biocon has seen a strong 41% YoY growth in Research Services and a steady growth in its Biosimilars business, reporting revenue of Rs 758 Crore, up 10% over the same period last year, and 14% over the preceding quarter. Consolidated revenues, at Rs 1,808 Crore, saw a muted growth on account of COVID-related operational challenges at Biocon's API facilities, both in Bengaluru and Hyderabad. Q1FY22 P&L was also impacted by a share of loss in its Boston-based associate start-up entity, Bicara Therapeutics Inc. Excluding this share of loss, Profit before Tax was a healthy Rs 224 Crore. Novel Biologics are investment intensive and we will explore external venture funding to support clinical development for long-term value creation. Business sentiments are favorable for Biosimilars, Generics and Research Services. Globally, we see a strong demand for biosimilars and generic drugs, given the growing emphasis on affordable drug pricing. Net Profit, excluding the share of loss from Bicara, was at Rs 142 Crore and reported Net profit was at Rs 84 Crore."

"The outlook for the rest of the year is promising with several drug approvals on the anvil, contingent to timely U.S. FDA onsite inspections in India and Malaysia, whilst Research Services continue to see rising demand."

"John Shaw has decided to step down from the Board effective the end of the Annual General Meeting this year, due to health reasons. My colleagues on the Board, join me to place on record our heartfelt appreciation for the critical and invaluable role he has played in building Biocon,"

Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, "The Generics business delivered a subdued performance as the second wave of the pandemic resulted in operational and supply chain challenges that impacted our API manufacturing. With the number of COVID-19 cases starting to decline, we expect operational and supply chain challenges to normalise in the coming quarter. Additionally, the comparable period in the previous fiscal benefited from customers stockpiling APIs on account of Covid-related uncertainties. We also continued to face pricing pressures in our US formulations business. However, I am pleased to report the launch of two new formulations in the US during the quarter - Labetalol Hydrochloride tablets and Esomeprazole Magnesium Delayed-Release capsules, which will further expand our global presence. Increasing operational efficiencies through digitisation, cost optimisation and capacity enhancement, continue to remain a key focus area for us, as we bring high quality, affordable products to market. I welcome Dr Vijaya Kumar to the organisation and am confident that his appointment will bolster our efforts on these fronts."

Dr. Arun Chandavarkar, Managing Director, Biocon Biologics Ltd, said, "The real highlight of this quarter was our ability to pull out all stops to make available our Covidcare portfolio, anchored by Alzumab-L, our novel antibody Itolizumab, to many thousand patients in critical need. Whilst we certainly hope that the surge in infections does not manifest as severely in future, we are now fully geared to address future patient demand."

"We reported revenues of Rs 758 Crore, representing a YoY growth of 10%. This was driven by strong growth in India, led by our Covid- care portfolio and continued growth in other markets for biosimilars. Core EBITDA margins were a healthy 36% and after accounting for R&D, our EBITDA was at Rs 215 Crore, representing a 28% margin. This translated to a Profit before Tax of Rs 101 Crore."