Biocon's Net Profits Soar In Q4FY23 By 31% YoY, Revenues Up By 58.6%

Bangalore-based pharmaceutical company Biocon on Tuesday announced its consolidated financial results for the fourth quarter that ended 31st March 2023, the company registered a 58.6 per cent rise in its consolidated revenues from operations year on year. 

The company's total revenue for the March quarter stood at Rs 3,928 crores against Rs 2,476 crores in the same quarter last year. For FY23 Biocon's revenues jumped by 37.56 per cent YoY to Rs 11,550 crores against Rs 8,396 crores. 

Whereas the pharma major posted a net profit of Rs 313 crores in Q4FY23 against a net profit of 238 crores in the same quarter last year, a jump of 31 per cent YoY. In FY23, the company's net profits dipped by 28.7 per cent YoY to Rs 462 crores against Rs 648 crores reported in FY22.

In Q4FY23, Biocon's total expenses rose by 66.2 per cent YoY to Rs 3,389 crores against Rs 2,039 crores recorded in the same quarter last year, whereas the company's expenses rose by 43.6 per cent in the whole year of FY23 to Rs 10,194 against Rs 7,095 crores in FY22. 

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 75 per cent YoY to Rs 1,152 against Rs 689 crores registered in the March quarter of FY22. The EBITDA margins increased to 29 per cent in Q4FY23 from 27 per cent in Q4FY22. For the whole of FY23, the margins dipped to 25 per cent against 26 per cent in FY22.

The company's sales were led by its biosimilar business which doubled (114 per cent) YoY to Rs 2,101 crores in Q4FY23 from Rs 982 crores in Q4FY22. Followed by its research services which clocked Rs 994 crores in Q4FY23 against Rs 785 crores in the same quarter last year. 

The company's generics business remained largely muted with Biocon registering Rs 716 crores in the March quarter compared to Rs 717 crores recorded in Q4FY22.

Biocon's R&D expenses were clocked at Rs 342 crore for the fourth quarter amounting to 12 per cent of its revenues.

“FY23 has been a transformational year led by the acquisition of our partnered biosimilars business from Viatris, which has significantly contributed to Biocon’s robust consolidated financials. Revenues grew 38 per cent to Rs 11,550 crore, and EBITDA was at Rs 2,888 Crore, reporting a 32% growth. Revenue growth was led by Biosimilars at 61 per cent, Research Services at 23 per cent and Generics at 13 per cent. R&D Investments have nearly doubled to Rs 1,119 crore, as we seek to drive future growth," stated Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics. 

Mazumdar further said that Biocon ended FY23 with a strong Q4 performance where Revenues grew by 59 per cent to Rs 3,929 crore and EBITDA by 75 per cent to Rs 1,152 crore. "Biosimilars continue to be the largest business segment for Biocon, with revenues of Rs 2,102 crore, a growth of 114 per cent, exiting the year on a USD 1 billion revenue trajectory,” Mazumdar added.

The pharma major in a statement said that it will be raising Rs 800 crore from Edelweiss Alternate Asset Advisors Ltd (EAAA) through the issuance of NCDs worth Rs 500 crore by Biocon Limited and CCDs worth Rs 300 crore by Biocon Biologics Limited. 

The pharmaceutical company's board has recommended a final dividend at the rate of 30 per cent i.e. Rs 1.50 per equity share of face value of Rs 5 each for the financial year ended March 31, 2023.

Biocon's stock closed 0.87 per cent higher on Tuesday at Rs 242.25 per scrip on the BSE.