Profit before interest, tax and other unallocable items (PBIT) has jumped 17.73% to Rs 269.60 crore.  PBIT of Novel Biologics segment rose 4.28% to Rs -49.20 crore (accounting for -18.25% of total PBIT).  PBIT of Research service segment rose 10.21% to Rs 128.40 crore (accounting for 47.63% of total PBIT).  PBIT of Generics segment rose 24.95% to Rs 66.60 crore (accounting for 24.70% of total PBIT).  PBIT of segment rose 11.93% to Rs 123.80 crore (accounting for 45.92% of total PBIT).  

PBIT margin of Research service segment rose from 19.93% to 20.02%.  PBIT margin of Generics segment rose from 9.40% to 10.96%.  PBIT margin of segment fell from 14.38% to 12.61%.  Overall PBIT margin rose from 11.92% to 12.00%.  

Operating profit margin has jumped from 21.52% to 22.45%, leading to 22.11% rise in operating profit to Rs 488.20 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 33.55% to 33.77%.   Purchase of finished goods cost rose from 0.89% to 1.30%.   Employee cost decreased from 23.52% to 22.00%.   Other expenses fell from 21.75% to 21.24%.   Preoperation capitalised expenses rose from 4.48% to 6.00%.   

Other income rose 73.12% to Rs 48.3 crore.  PBIDT rose 25.44% to Rs 536.5 crore.  Provision for interest rose 206.25% to Rs 14.7 crore.  

PBDT rose 23.39% to Rs 521.8 crore.  Provision for depreciation rose 10.41% to Rs 205.7 crore.  

Profit before tax grew 33.60% to Rs 316.10 crore.  Share of profit/loss was 4,190.91% lower at Rs -47.2 crore.  Provision for tax was expense of Rs 49.3 crore, compared to Rs 48.9 crore.  Effective tax rate was 18.33% compared to 20.76%.

Minority interest increased 80.56% to Rs 32.50 crore.  Net profit attributable to owners of the company increased 10.97% to Rs 187.10 crore.  

Promoters' stake was 60.64% as of 31 December 2021 ,compared to 60.67% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Biocon has increased 8.95% to Rs 5775.2 crore.  Sales of Research service segment has gone up 21.00% to Rs 1,846.10 crore (accounting for 30.82% of total sales).  Sales of Generics segment has gone down 9.41% to Rs 1,623.70 crore (accounting for 27.10% of total sales).  Sales of Biosimilars segment has gone up 16.17% to Rs 2,482.00 crore (accounting for 41.43% of total sales).  Inter-segment sales rose Rs 153.60 crore to Rs 215.30 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.95% to Rs 711.50 crore.  PBIT of Novel Biologics segment fell 66.11% to Rs -169.10 crore (accounting for -23.77% of total PBIT).  PBIT of Research service segment rose 21.30% to Rs 336.00 crore (accounting for 47.22% of total PBIT).  PBIT of Generics segment fell 33.50% to Rs 145.70 crore (accounting for 20.48% of total PBIT).  PBIT of Biosimilars segment rose 34.40% to Rs 398.90 crore (accounting for 56.06% of total PBIT).  

PBIT margin of Research service segment rose from 18.16% to 18.20%.  PBIT margin of Generics segment fell from 12.22% to 8.97%.  PBIT margin of Biosimilars segment rose from 13.89% to 16.07%.  Overall PBIT margin fell from 12.67% to 11.88%.  

Operating profit margin has jumped from 22.83% to 23.87%, leading to 13.90% rise in operating profit to Rs 1,378.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 32.80% to 34.08%.   Purchase of finished goods cost rose from 1.34% to 1.84%.   Employee cost decreased from 23.34% to 23.25%.   Other expenses fell from 20.60% to 18.09%.   Preoperation capitalised expenses rose from 4.56% to 5.05%.   

Other income rose 159.18% to Rs 145.4 crore.  PBIDT rose 20.34% to Rs 1523.7 crore.  Provision for interest rose 139.92% to Rs 57.1 crore.  

PBDT rose 18.05% to Rs 1466.6 crore.  Provision for depreciation rose 13.41% to Rs 602 crore.  

Profit before tax grew 21.50% to Rs 864.60 crore.  Share of profit/loss was 1,486.60% lower at Rs -153.9 crore.  Provision for tax was expense of Rs 152.9 crore, compared to Rs 152.1 crore.  Effective tax rate was 23.87% compared to 21.67%.

Minority interest increased 24.64% to Rs 77.90 crore.  Net profit attributable to owners of the company decreased 15.90% to Rs 409.80 crore.  

Promoters' stake was 60.64% as of 31 December 2021 ,compared to 60.67% as of 31 December 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 29.69% of total sales).  Sales of Generics segment has gone up 7.05% to Rs 2,362.70 crore (accounting for 32.11% of total sales).  Sales of Biosimilars segment has gone up 20.95% to Rs 2,800.20 crore (accounting for 38.06% 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 3.36% to Rs 1,070.50 crore.  PBIT of Novel Biologics segment rose 80.40% to Rs -20.40 crore (accounting for -1.91% of total PBIT).  PBIT of Research service segment fell 2.56% to Rs 434.20 crore (accounting for 40.56% of total PBIT).  PBIT of Generics segment fell 13.86% to Rs 291.50 crore (accounting for 27.23% of total PBIT).  PBIT of Biosimilars segment fell 14.63% to Rs 365.20 crore (accounting for 34.11% 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 12.34%.  PBIT margin of Biosimilars segment fell from 18.48% to 13.04%.  Overall PBIT margin fell from 16.95% to 14.55%.  

Operating profit margin has declined 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.  PBIDT rose 8.09% to Rs 1907.3 crore.  Provision for interest fell 11.09% to Rs 57.7 crore.  Loan funds rose to Rs 4,481.10 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 .  

PBDT rose 8.83% to Rs 1849.6 crore.  Provision for depreciation rose 29.50% to Rs 715.1 crore.  Fixed assets increased to Rs 9,137.70 crore as of 31 March 2021 from Rs 8,140.70 crore as of 31 March 2020.  Intangible assets stood at Rs 26.40 crore.  

Profit before tax down 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

Biocon has been selected to participate in the Production Linked Incentive (PLI) scheme announced by the Government of India, which will provide financial incentives linked to investments in manufacturing infrastructure. Biocon is amongst one of 55 companies selected for the scheme.

Company's greenfield Immunosuppressants API manufacturing facility in Visakhapatnam continues to remain on track to be commissioned by the end of FY22.

In Q3 FY22, company witnessed Continued pricing pressure due to higher RM/solvent and logistics cost.

In Q3 FY22, Gross R&D spend was Rs 178 crore.

Management Commentary: Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said, "Biocon's consolidated Q3FY22 revenues grew by 18% YoY to Rs 2,223 Crore, driven by a strong performance across all business segments. Biosimilars grew by 28% to Rs 981 Crore, Research Services was up 10% at Rs 641 Crore and Generics delivered a 7% growth at Rs 607 Crore. "EBITDA at Rs 537 Crore grew by 25%, which was impacted by mark- to- market loss attributed to Biocon Biologics' equity investment in Adagio. Core EBITDA stood at Rs 715 Crore with a healthy margin of 33%. PBT for the quarter stood at Rs 269 Crore. Adjusted for Adagio related loss, PBT was higher at Rs 346 Crore, indicating a healthy operating profitability." "Biocon Biologics achieved a key milestone with the commercialization of the world's first interchangeable biosimilar, our Insulin Glargine, in the U.S.. Approvals for several of our generics and biosimilars in global markets, and renewal of key long-term research service agreements at Syngene, position us for a strong close to this fiscal,"

Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, "I am pleased with our robust sequential growth in the third quarter, that was driven by our day-one U.S. launch of Everolimus 10mg tablet, a vertically integrated formulation, as well as a ramp-up of demand in our API business. The Everolimus launch also contributed to our YoY revenue growth. The quarter saw a return to normalized operations, which had been impacted due to COVID related challenges in previous quarters. "During the quarter, we continued to make progress on our product pipeline, with three new approvals – one in the U.S. and two in Europe. "Our partnership with Tabuk Pharmaceuticals paves the way for expansion into the Middle East and North Africa and underscores our commitment to make medicines available to patients who need them around the world. "Looking ahead, our efforts will focus around further capacity expansion, cost improvement projects and accelerating our pipeline to bring our products to market expeditiously."

Dr Arun Chandavarkar, Managing Director, Biocon Biologics Ltd., said, "Following the landmark approval of our interchangeable bGlargine, the first-ever such biosimilar approval, by the U.S. FDA, we recorded another milestone this quarter with the commercialization of this product by our partner Viatris in the U.S. "Biocon Biologics reported a revenue growth of 28% YoY and 32% QoQ at Rs 981 Crore. Core EBITDA rose 27% to Rs 363 Crore with healthy Core EBITDA margins at 38%. The strong growth in revenue is on the back of robust demand for our products across geographies and the commencement of supplies of interchangeable bGlargine to the U.S. "Encouraged by the demand for our insulins globally and considering the new opportunities, we have initiated investments for the expansion of our insulin manufacturing facility in Malaysia. We have seen good progress on our R&D pipeline with a few molecules expected to enter the clinic in Q4FY22. "I am proud of our team who have confronted the challenges brought on by the pandemic with resilience and resourcefulness in order to address patient needs across the world."

Jonathan Hunt, CEO & Managing Director, Syngene said: "Syngene's performance across all divisions has been positive through the year, and we expect a busy fourth quarter. As a result, we have raised our revenue growth guidance for the full year to high teens. "A highlight for the quarter was the extension of our long-standing collaboration with Amgen Inc. until 2026. This partnership will also add a new state-of-the-art dedicated laboratory to accelerate the advancement of Amgen's R&D projects. "The 5-year renewal of the long-standing contract with Amgen, coming on the heels of the 10-year contract extension signed with BMS last year, confirms the stability of both relationships and provides a clear perspective on the future of our Dedicated Centers. "I believe that Syngene is well-positioned to meet our clients' evolving requirements and capture market opportunities as they arise."