Biocon net profit down 54 percent in second quarter

October 16th, 2008 - 8:50 pm ICT by IANS  

Bangalore, Oct 16 (IANS) India’s leading biotechnology firm Biocon Ltd has posted consolidated net profit of Rs.250 million for the second quarter this fiscal, as against Rs.540 million in the same quarter last year, reflecting a negative growth of 54 percent.According to a company statement, the consolidated income for the quarter under review, however, shot up 63 percent to Rs.4.58 billion from Rs.2.81 billion in the year-ago period.

As a standalone company, Biocon’s net income in the July-September period declined 31 percent to Rs.335 million from Rs.440 million a year ago. Total income, however, increased a modest 11.7 percent to Rs.2.68 billion from Rs.2.41 billion.

Similarly, for the first half of current fiscal, the consolidated net profit declined a whopping 62.5 percent to Rs.400 million from Rs.1.07 billion in the same period last year. Total income for the six-month period, however, increased Rs.7.34 billion from Rs.5.93 billion, registering 24 percent growth.

“Our performance in the first half has shown resilience despite being impacted by rupee volatility, which has seen us make a mark-to-mark provision of Rs.600 million,” Biocon chairperson Kiran Mazumdar-Shaw said in the statement.

At a time when global businesses are challenged with an economic downturn, the company’s strong financial base had given it a significant advantage.

“In the second quarter, our API (active pharmaceutical ingredients) business registered 21 percent growth, bolstered by 36 percent growth in our retail branded formulations,” Shaw said.

The company’s balance sheet remained strong with net cash of Rs.300 million and gross of Rs.3.5 billion.

Clinical development of its oral insulin (IN105) and monoclonal anti-body are progressing well. Oral insulin will commence phase three clinical trials soon.

The company filed 11 new patents in the second quarter, bringing the total tally to 892 filed and 166 granted patents.

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