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For
quarter ended Dec 2022, consolidated Net sales (including other operating income) of Biocon has increased 35.27% to Rs 2941.1 crore compared to quarter ended Dec 2021. Sales of Research service segment has gone up 22.53% to Rs 785.90 crore (accounting for 26.11% of total sales). Sales of Generics segment has gone up 18.14% to Rs 717.60 crore (accounting for 23.84% of total sales). Sales of segment has gone up 53.52% to Rs 1,506.60 crore (accounting for 50.05% of total sales). Inter-segment sales came down from Rs 71.60 crore to Rs 69.00 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 2.63% to Rs 276.70 crore. PBIT of Novel Biologics segment rose 23.98% to Rs -37.40 crore (accounting for -13.52% of total PBIT). PBIT of Research service segment rose 8.96% to Rs 139.90 crore (accounting for 50.56% of total PBIT). PBIT of Generics segment rose 8.26% to Rs 72.10 crore (accounting for 26.06% of total PBIT). PBIT of segment fell 17.53% to Rs 102.10 crore (accounting for 36.90% of total PBIT). PBIT margin of Research service segment fell from 20.02% to 17.80%. PBIT margin of Generics segment fell from 10.96% to 10.05%. PBIT margin of segment fell from 12.61% to 6.78%. Overall PBIT margin fell from 12.00% to 9.19%. Operating profit margin has declined from 22.45% to 21.91%, leading to 31.97% rise in operating profit to Rs 644.30 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 33.77% to 34.94%. Purchase of finished goods cost fell from 1.30% to 1.22%. Employee cost decreased from 22.00% to 18.19%. Other expenses rose from 21.24% to 24.68%. Preoperation capitalised expenses fell from 6.00% to 3.68%. Other income rose 62.73% to Rs 78.6 crore. PBIDT rose 34.74% to Rs 722.9 crore. Provision for interest rose 718.37% to Rs 120.3 crore. PBDT rose 15.48% to Rs 602.6 crore. Provision for depreciation rose 46.38% to Rs 301.1 crore. Profit before tax down 4.62% to Rs 301.50 crore. Share of profit/loss was 17.80% lower at Rs -55.6 crore. Extraordinary items stood at Rs -271.4 crore compared to nil in Q3 FY22. Provision for tax was credit of Rs 4.8 crore, compared to debit of Rs 49.3 crore. Effective tax rate was 18.82% compared to 18.33%. Minority interest decreased 35.08% to Rs 21.10 crore. Net loss attributable to owners of the company was Rs 41.8 crore compared to profit of Rs 187.1 crore.Promoters’ stake was 60.64% as of 31 December 2022 ,compared to 60.64% as of 31 December 2021 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Biocon has increased 28.14% to Rs 7400.3 crore. Sales of Research service segment has gone up 19.09% to Rs 2,198.50 crore (accounting for 28.93% of total sales). Sales of Generics segment has gone up 18.25% to Rs 1,920.10 crore (accounting for 25.27% of total sales). Sales of Biosimilars segment has gone up 40.23% to Rs 3,480.60 crore (accounting for 45.80% of total sales). Inter-segment sales came down from Rs 215.30 crore to Rs 198.90 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 3.15% to Rs 733.90 crore. PBIT of Novel Biologics segment rose 59.08% to Rs -69.20 crore (accounting for -9.43% of total PBIT). PBIT of Research service segment rose 7.98% to Rs 362.80 crore (accounting for 49.43% of total PBIT). PBIT of Generics segment rose 30.13% to Rs 189.60 crore (accounting for 25.83% of total PBIT). PBIT of Biosimilars segment fell 37.15% to Rs 250.70 crore (accounting for 34.16% of total PBIT). PBIT margin of Research service segment fell from 18.20% to 16.50%. PBIT margin of Generics segment rose from 8.97% to 9.87%. PBIT margin of Biosimilars segment fell from 16.07% to 7.20%. Overall PBIT margin fell from 11.88% to 9.66%. Operating profit margin has declined from 23.87% to 20.46%, leading to 9.87% rise in operating profit to Rs 1,514.40 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 34.08% to 35.30%. Purchase of finished goods cost fell from 1.84% to 1.57%. Employee cost decreased from 23.25% to 20.49%. Other expenses rose from 18.09% to 23.39%. Preoperation capitalised expenses fell from 5.05% to 4.96%. Other income rose 51.99% to Rs 221 crore. PBIDT rose 13.89% to Rs 1735.4 crore. Provision for interest rose 198.07% to Rs 170.2 crore. PBDT rose 6.72% to Rs 1565.2 crore. Provision for depreciation rose 24.49% to Rs 749.4 crore. Profit before tax down 5.64% to Rs 815.80 crore. Share of profit/loss was 17.54% higher at Rs -126.9 crore. Extraordinary items were decreased to Rs -288.40 crore. Provision for tax was expense of Rs 172 crore, compared to Rs 152.9 crore. Effective tax rate was 42.95% compared to 23.87%.Minority interest increased 1.41% to Rs 79.00 crore. Net profit attributable to owners of the company decreased 63.52% to Rs 149.50 crore. Promoters’ stake was 60.64% as of 31 December 2022 ,compared to 60.64% as of 31 December 2021 .
Full year results analysis.
Net sales (including other operating income) of Biocon has increased 14.57% to Rs 8184 crore. Sales of Novel Biologics segment has gone up 385.71% to Rs 51.00 crore (accounting for 0.60% of total sales). Sales of Research service segment has gone up 19.22% to Rs 2,604.20 crore (accounting for 30.78% of total sales). Sales of Generics segment has gone down 0.92% to Rs 2,340.90 crore (accounting for 27.67% of total sales). Sales of Biosimilars segment has gone up 23.72% to Rs 3,464.30 crore (accounting for 40.95% of total sales). Inter-segment sales rose Rs 214.60 crore to Rs 276.40 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 2.75% to Rs 1,099.90 crore. PBIT of Novel Biologics segment fell 977.45% to Rs -219.80 crore (accounting for -19.98% of total PBIT). PBIT of Research service segment rose 18.63% to Rs 515.10 crore (accounting for 46.83% of total PBIT). PBIT of Generics segment fell 10.33% to Rs 261.40 crore (accounting for 23.77% of total PBIT). PBIT of Biosimilars segment rose 48.74% to Rs 543.20 crore (accounting for 49.39% of total PBIT). PBIT margin of Novel Biologics segment fell from negative 194.29% to negative 430.98%. PBIT margin of Research service segment fell from 19.88% to 19.78%. PBIT margin of Generics segment fell from 12.34% to 11.17%. PBIT margin of Biosimilars segment rose from 13.04% to 15.68%. Overall PBIT margin fell from 14.55% to 13.00%. Operating profit margin has jumped from 23.14% to 24.07%, leading to 19.20% rise in operating profit to Rs 1,970.20 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 32.69% to 33.34%. Purchase of finished goods cost rose from 1.39% to 1.91%. Employee cost decreased from 23.42% to 22.27%. Other expenses fell from 20.26% to 19.14%. Preoperation capitalised expenses rose from 4.72% to 5.64%. Other income fell 16.42% to Rs 212.7 crore. PBIDT rose 14.45% to Rs 2182.9 crore. Provision for interest rose 17.16% to Rs 67.6 crore. Loan funds rose to Rs 5,146.60 crore as of 31 March 2022 from Rs 4,481.10 crore as of 31 March 2021. Inventories rose to Rs 2,298.20 crore as of 31 March 2022 from Rs 1,866.60 crore as of 31 March 2021. Sundry debtors were higher at Rs 2,058.20 crore as of 31 March 2022 compared to Rs 1,503.30 crore as of 31 March 2021. Cash and bank balance declined from Rs 2,015.40 crore as of 31 March 2021 to Rs 1,747.50 crore as of 31 March 2022. Investments declined from Rs 1,951.90 crore as of 31 March 2021 to Rs 1,587.90 crore as of 31 March 2022. PBDT rose 14.37% to Rs 2115.3 crore. Provision for depreciation rose 13.86% to Rs 814.2 crore. Fixed assets increased to Rs 10,653.00 crore as of 31 March 2022 from Rs 9,137.70 crore as of 31 March 2021. Intangible assets stood at Rs 26.40 crore. Profit before tax grew 14.68% to Rs 1,301.10 crore. Share of profit/loss was 160.58% lower at Rs -206.9 crore. Provision for tax was expense of Rs 211.5 crore, compared to Rs 221.5 crore. Effective tax rate was 21.51% compared to 20.75%. Minority interest increased 16.56% to Rs 123.20 crore. Net profit attributable to owners of the company decreased 12.44% to Rs 648.40 crore. Equity capital increased from Rs 600.00 crore as of 31 March 2021 to Rs 600.30 crore as of 31 March 2022. Per share face Value remained same at Rs 5.00. Promoters’ stake was 60.64% as of 31 March 2022 ,compared to 60.67% as of 31 March 2021 . Cash flow from operating activities increased to Rs 1,176.60 crore for year ended March 2022 from Rs 1,159.70 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 1,924.80 crore, compared to Rs 1,746.30 crore during the year ended March 2021. Other Highlights
In
Q3 FY23, Generics business went up 18% compared to Q3 FY22. Biosimilars segment
went up 54% and Research services up 23% on YoY basis.
In
Q3 FY23, Generics business contributed 24% of total revenue, Biosimilars 50%
and Research services 26%.
Biocon
had raised USD 420 million of mezzanine financing to part finance the USD 650
million equity infusion into Biocon Biologics. Biocon has entered into a
definitive agreement with Kotak Strategic Situations Fund for a structured
funding upto Rs 1200 crore. This funding together with recently concluded stake
sale in Syngene will help reduce net debt.
Management Comments :
Kiran Mazumdar-Shaw, Executive Chairperson,
Biocon and Biocon Biologics said, “Q3 FY23 has been an eventful quarter which
saw the completion of the global acquisition of our partnered Biosimilars
business from Viatris on Nov 29, 2022. We are now implementing country-wise integration
of the business to maximize the value of the combined entity to propel growth.
Biosimilars as a business segment offers differentiated growth to Biocon
Biologics based on vertical integration and a unique portfolio of Insulins and
antibody based immunotherapeutics. This quarter captures a fraction of the
acquired business, but from Q4FY23 onwards, the financials will recognise the
entire Biosimilars business. “Biocon’s consolidated revenues for the quarter
grew 36% to Rs 3,020 crore on the back of robust performance across all its
three businesses. The biggest contribution came from the Biosimilars business,
which reported a 54% increase in revenues to Rs 1,507 crore. Research Services
revenues at Rs 786 crore and Generics business revenues at Rs 718 crore, grew
23% and 18%, respectively. The advancement of our research pipeline led to Rs
337 crore Net R&D investments this quarter, which will drive Biocon’s
future growth. We reported a strong EBITDA growth of 35% to Rs 723 crore,
representing a healthy EBITDA margin of 24%. Core EBITDA grew 49% to Rs 1,069
crore. As a part of our strategy to reduce the acquisition debt, Biocon has
raised funds through a partial divestment of its stake in Syngene. “We expect
to end FY23 on a strong note with healthy growth across businesses. Biocon
Biologics is tracking towards exiting the year at a USD 1 billion trajectory,
excluding vaccines.”
Siddharth Mittal, CEO & Managing
Director, Biocon said, “The Generics business’ third-quarter results were in
line with our expectations, delivering healthy sequential and year-on-year
revenue growth. The performance was driven by immunosuppressant API sales and
Generic Formulations, which saw an uptick in the sales of statins as well as
recent product launches. Margins, compared to the previous year, were muted by
the product mix and continuing pricing pressure in the U.S. market. “Our
geographical expansion continued to gain traction with the signing of a
partnership agreement with Zentiva for commercializing Liraglutide in Europe,
as well as a long-term strategic partnership with Farmanguinhos in Brazil for
the supply and tech-transfer of a finished dose formulation immunosuppressant
product. These partnerships will contribute towards attaining mid-teens growth
in the short to medium term. We also secured approvals for some of our key
formulation products inEurope. Our focus remains on geographical expansion, new
product launches, strengthening our product pipeline and executing on key capex
projects..”
Shreehas Tambe, CEO & Managing
Director, Biocon Biologics said, “Biocon Biologics recorded its highest ever
quarterly revenue of Rs 1,507 crore, reflecting a growth of 54% on the back of
our acquisition of Viatris` biosimilars business and continued growth in BBL
led markets. This strong performance has translated to an EBITDA growth of 53%
to Rs 361 crore. This landmark acquisition marks an inflection point in our
transformational journey and positions Biocon Biologics as a unique, fully
integrated, leading global biosimilars enterprise. While our biosimilars
portfolio continues to gain market share in the U.S. and EU, our business in
the Emerging Markets is also on a growth trajectory with product launches in 8
new markets this quarter." “We have drawn up a comprehensive plan to integrate
the acquired Viatris business into Biocon Biologics and migration of business
operations is scheduled in a phased manner to ensure business continuity and
uninterrupted service to customers and patients.”
Jonathan Hunt, CEO & Managing Director,
Syngene said, “We continue to see good demand in the main client markets of
U.S. and Europe which - combined with strong execution and forward planning -
has helped us deliver solid revenue growth in the third quarter. We are pleased
to report positive performances from all divisions this quarter. Growth in our
research divisions, Discovery Services and the Dedicated Centres, was solid. In
Development Services, repeat orders from existing clients, as well as an
increase in the number of collaborations with emerging biopharma companies
drove a robust performance. In Manufacturing, the highlight of the quarter was
the successful inspection of our biologics facilities by the U.S. FDA, EMA and
MHRA. Based on our strong performance to date, we are confident of meeting the
upgraded annual revenue growth guidance of high teens.”
| Biocon : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202212 | 202112 | Var.(%) | 202212 | 202112 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 2,941.10 | 2,174.20 | 35.27 | 7,400.30 | 5,775.20 | 28.14 | 8,184.00 | 7,143.10 | 14.57 | | OPM (%) | 21.91 | 22.45 | -55 bps | 20.46 | 23.87 | -340 bps | 24.07 | 23.14 | 94 bps | | OP | 644.30 | 488.20 | 31.97 | 1,514.40 | 1,378.30 | 9.87 | 1,970.20 | 1,652.80 | 19.20 | | Other Inc. | 78.60 | 48.30 | 62.73 | 221.00 | 145.40 | 51.99 | 212.70 | 254.50 | -16.42 | | PBIDT | 722.90 | 536.50 | 34.74 | 1,735.40 | 1,523.70 | 13.89 | 2,182.90 | 1,907.30 | 14.45 | | Interest | 120.30 | 14.70 | 718.37 | 170.20 | 57.10 | 198.07 | 67.60 | 57.70 | 17.16 | | PBDT | 602.60 | 521.80 | 15.48 | 1,565.20 | 1,466.60 | 6.72 | 2,115.30 | 1,849.60 | 14.37 | | Depreciation | 301.1 | 205.7 | 46.38 | 749.4 | 602 | 24.49 | 814.2 | 715.1 | 13.86 | | PBT | 301.50 | 316.10 | -4.62 | 815.8 | 864.6 | -5.64 | 1301.1 | 1134.5 | 14.68 | | Share of Profit/(Loss) from Associates | -55.6 | -47.2 | -17.80 | -126.9 | -153.9 | 17.54 | -206.9 | -79.4 | -160.58 | | PBT before EO | 245.9 | 268.9 | -8.55 | 688.9 | 710.7 | -3.07 | 1094.2 | 1055.1 | 3.71 | | EO Income | -271.4 | 0 | - | -288.4 | -70.1 | -311.41 | -111.1 | 12.6 | PL | | PBT after EO | -25.5 | 268.9 | PL | 400.5 | 640.6 | -37.48 | 983.1 | 1067.7 | -7.92 | | Taxation | -4.8 | 49.3 | LP | 172 | 152.9 | 12.49 | 211.5 | 221.5 | -4.51 | | PAT | -20.7 | 219.6 | PL | 228.5 | 487.7 | -53.15 | 771.6 | 846.2 | -8.82 | | Minority Interest (MI) | 21.1 | 32.5 | -35.08 | 79 | 77.9 | 1.41 | 123.2 | 105.7 | 16.56 | | Net profit | -41.8 | 187.1 | PL | 149.5 | 409.8 | -63.52 | 648.4 | 740.5 | -12.44 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | -41.8 | 187.1 | PL | 149.5 | 409.8 | -63.52 | 648.4 | 740.5 | -12.44 | | EPS (Rs)* | 0.53 | 1.56 | -66.00 | 2.50 | 3.83 | -34.58 | 6.07 | 6.09 | -0.44 | | | * EPS is on current equity of Rs 600.30 crore, Face value of Rs 5, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Biocon : Consolidated Segment Results | | | Quarter ended | Year to Date | Year ended |
|---|
| % of (Total) | 202212 | 202112 | Var.(%) | % of (Total) | 202212 | 202112 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | Enzymes | 0.00 | 0.00 | 0.00 | - | | Pharma | 0.00 | 0.00 | 0.00 | - | | Novel Biologics | 0.00 | 0.00 | 15.60 | - | 0.60 | 51.00 | 10.50 | 385.71 | | Research service | 26.11 | 785.90 | 641.40 | 22.53 | 28.93 | 2,198.50 | 1,846.10 | 19.09 | 30.78 | 2,604.20 | 2,184.30 | 19.22 | | Generics | 23.84 | 717.60 | 607.40 | 18.14 | 25.27 | 1,920.10 | 1,623.70 | 18.25 | 27.67 | 2,340.90 | 2,362.70 | -0.92 | | | 50.05 | 1,506.60 | 981.40 | 53.52 | 45.80 | 3,480.60 | 2,482.00 | 40.23 | 40.95 | 3,464.30 | 2,800.20 | 23.72 | | Total Reported Sales | 100.00 | 3,010.10 | 2,245.80 | 34.03 | 100.00 | 7,599.20 | 5,990.50 | 26.85 | 100.00 | 8,460.40 | 7,357.70 | 14.99 | | Less: Inter segment revenues | | 69.00 | 71.60 | -3.63 | | 198.90 | 215.30 | -7.62 | | 276.40 | 214.60 | 28.80 | | Net Sales | 100.00 | 2,941.10 | 2,174.20 | 35.27 | 100.00 | 7,400.30 | 5,775.20 | 28.14 | 100.00 | 8,184.00 | 7,143.10 | 14.57 | | PBIT | | Enzymes | 0.00 | 0.00 | 0.00 | - | | Pharma | 0.00 | 0.00 | 0.00 | - | | Novel Biologics | -13.52 | -37.40 | -49.20 | 23.98 | -9.43 | -69.20 | -169.10 | 59.08 | -19.98 | -219.80 | -20.40 | -977.45 | | Research service | 50.56 | 139.90 | 128.40 | 8.96 | 49.43 | 362.80 | 336.00 | 7.98 | 46.83 | 515.10 | 434.20 | 18.63 | | Generics | 26.06 | 72.10 | 66.60 | 8.26 | 25.83 | 189.60 | 145.70 | 30.13 | 23.77 | 261.40 | 291.50 | -10.33 | | | 36.90 | 102.10 | 123.80 | -17.53 | 34.16 | 250.70 | 398.90 | -37.15 | 49.39 | 543.20 | 365.20 | 48.74 | | Total PBIT | 100.00 | 276.70 | 269.60 | 2.63 | 100.00 | 733.90 | 711.50 | 3.15 | 100.00 | 1,099.90 | 1,070.50 | 2.75 | | Less : Interest | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Add: Other un-allcoable | | -30.80 | -0.70 | -4,300.00 | | -45.00 | -0.80 | -5,525.00 | | -5.70 | -15.40 | 62.99 | | PBIT Margin(%) | | Enzymes | | 0.00 | 0.00 | 0.00 | | Pharma | | 0.00 | 0.00 | 0.00 | | Novel Biologics | | 0.00 | -315.38 | 31,538.46 | | 0.00 | -436.95 | 43,695.09 | | -430.98 | -194.29 | -23,669.47 | | Research service | | 17.80 | 20.02 | -221.75 | | 16.50 | 18.20 | -169.84 | | 19.78 | 19.88 | -9.86 | | Generics | | 10.05 | 10.96 | -91.74 | | 9.87 | 8.97 | 90.12 | | 11.17 | 12.34 | -117.09 | | | | 6.78 | 12.61 | -583.78 | | 7.20 | 16.07 | -886.89 | | 15.68 | 13.04 | 263.80 | | PBT | 100.00 | 245.90 | 268.90 | -8.55 | 100.00 | 688.90 | 710.70 | -3.07 | 100.00 | 1,094.20 | 1,055.10 | 3.71 |
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