#BioconQ1FY20 financial results media briefing by Kiran Mazumdar-Shaw, CMD, Biocon Ltd.

#BioconQ1FY20 financial results media briefing by Kiran Mazumdar-Shaw, CMD, Biocon Ltd.



I'm pleased to share with you of our earnings report for q1 FY 20 and I'm delighted that we have reported a very very strong start to this fiscal our consolidated revenues at a group level has grown 25% to 1490 crores from 1193 crores last fiscal net profit has zoomed to 223 crores a growth of 86% which excludes an exceptional item which then brings the reported profit growth to 206 crores the net profit has been impacted due to an exceptional item which is on account of attacks on the restructuring of group entities consolidated a bit des margins where 31% as compared to 26% in q1 last fiscal and a bit da itself has increased 52% to 462 crores from 307 close last fiscal the profit margins excluding exceptional items stood at 15% and our gross R&D spend was at 110 crores which corresponds to 11 percent of revenues excluding sin gene of this 79 crores has been reported at the P&L level and the balance has been capitalized the net R&D expenses was up 78% therefore at 44 crores from a segments perspective all of our segments have reported growth some small molecules has has reported a 20% jump in revenues from 400 crores last fiscal to 480 crores this fiscal biologics has been the biggest growth driver this fiscal from 250 crores last fiscal to 490 crores this fiscal which is almost a doubling of revenues research services has also grown 4% from 405 close to 421 crores this fiscal the only underperforming segment in our business has been branded formulations which has declined 9% to 133 crores from 147 crores last fiscal largely on account of repricing that has been mandated by the Ministry of Health in the UAE business the India business as were has shown a modest growth this quarter of about 5% now coming to the segment wise performance the small molecules business has largely benefited from API sales on account of immunosuppressants and because of our continued growth in terms of our generics in the US market this largely rose uber statin Cimber statin and now recently atorvastatin we have also commenced a large manufacturing endeavor in Vishakhapatnam in the SE set to basically cope with our expanding demand for our fermentation based api's and largely the immunosuppressants which is what we have now initiated in Vishakhapatnam at a la at a cost of 600 crores which will basically extend over three years so we expand expect that this facility in Vishakhapatnam will start becoming fully operational by 2022 2023 as far as biologics is concerned we have had a stellar quarter and this has largely been you know bolstered because of our emerging market business of both biosimilars as well as insolence and of course a large contribution on account of FULFILLER sales in the u.s. has really led to this very strong quarter we expect our business to continue to mimic this particular growth momentum that we have seen as you know we've seen sequential you know improvement in our revenues both in small molecules and of course in the biologics business as well the biologic segment actually has reported ppit margins of 38 percent this quarter as compared to 11 percent last year and 33 percent last quarter so you can see the earnings improvement in the biologics business which is going to basically be a very strong factor in our growth and earnings quality for the rest of this fiscal give me that is a biosimilar trastuzumab was approved in Canada as the first biosimilar trust to zoo map we have also seen our trust to Zuma and insulin products gain greater market footprint across the world and our partner my land continues to commercialize sembly which is biosimilar glargine in Europe and trastuzumab continues to do well in Europe as mate and latter regions as you know we have now a portfolio of four biosimilars in global market which is biosimilar trust to Zuma biosimilar peg filgrastim sem Glee which is the biosimilar glargine and of biosimilar adalimumab through our partners Milan we believe that the strong scientific focus that we have put in terms of our biologics business has put us in good stead we expect to keep expanding this biologics portfolio as me as we move ahead coming to novels our partner ik William has basically got you know further approval by US FDA for the for other indications especially lupus nephritis it has also continues to expand you know continues to extend its trials in acute asthma and it continues to make progress in the GBA HD or graft-versus-host disease trial branded formulations as I mentioned has been an underperformer this quarter however the India business continues to grow well with bio with insulins bio map can mob and Crabbe Ava which are the key products that we are marketing in this segment in terms of outlook I would say that we expect this growth momentum to continue and we expect the second half to be even stronger than the first half so we are very you know confident that FY 20 is going to end on a strong note largely you know driven by our biologics business small molecules business and of course the research services business sin gene has had a muted first quarter but it expects to catch up in the second quarter and expects to end the year on a strong note as well so I think overall our businesses are performing extremely well for us and we are seeing a good return on investment in everything that we do in these three important key business you know businesses that I talked about and these are our strong growth drivers for this fiscal and beyond so with that I will you know end my comments and take on more specific questions in terms of our businesses thank you

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