Biocon Q4 net profit falls 42% to Rs 123 cr due to one-time COVID-19 impact; total income up 6%

New Delhi: Biotechnology major Biocon has reported a 42 percent decline in its consolidated net profit to Rs 123 crore for the quarter ended March 2020, mainly on account of the one-time coronavirus-related impact on its biologics business.

The company had posted a net profit of Rs 214 crore for the corresponding period of the previous fiscal, Biocon said in a statement.

#4QWithCNBCTV18 | Biocon's topline rises 3% YoY while margin slips; R&D expenses rise 36% to Rs 125 cr Vs Rs 92 cr (YoY) pic.twitter.com/DEvr8OwQCF

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Consolidated total income of the company rose up by 6 percent to Rs 1,644 crore as against Rs 1,557 crore for the same period year ago, it added.

“Q4FY20 witnessed a muted growth of 6 percent with revenues at Rs 1,644 crore due to operational challenges including one-time COVID-19 related impact on our biologics business,” Biocon Executive Chairperson Kiran Mazumdar-Shaw said.

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Small molecules and research services businesses, however, delivered robust growth of 15 percent and 14 percent, respectively, she added.

Consolidated net profit for the fiscal year ended March this year stood at Rs 748 crore. It was Rs 905 crore for the same period year ago, Biocon said.

The total income of the company rose to Rs 6,529 crore for the fiscal year ended March 2020 as against Rs 5,659 crore for the same period year ago, it added.

“On a full-year basis, we reported a revenue growth of 15 percent led by a strong performance by biologics, which grew by 29 percent, small molecules by 18 percent and research services by 10 percent. We believe that the Biologics business will recover in Q1FY21 and fully normalise from Q2FY21,” Mazumdar-Shaw said.

Net profit, before the exceptional item, was at Rs 760 crore, a growth of 4 percent, she added.

“We are dealing with unprecedented challenges related to COVID-19 and as a science-led company we are engaged in several initiatives spanning diagnostic tests, vaccines and therapies towards combating COVID-19,” Mazumdar-Shaw said.

Shares of Biocon were trading at Rs 323.50 per scrip on BSE, down 3.52 percent from their previous close.