Biocon came out with the financial results for the quarter ended March’09 and held a tele conference call on 28th April’09 to discuss the performance as well as future course of actions. The following are the key takeaways from the meet are as follows.
- The consolidated net sales for the quarter ended March’09 posted a growth of 75% to Rs 466.26 crore. Excluding the revenues from the Axicrop, the net sales for the quarter increased only by 10% to Rs 292.10 crore. Net profit with including Axicrop declined by 62% to Rs 24.88 crore and without Axicrop declined by 69% to Rs 20.30 crore.
- For the year ending March’09, the net sales on consolidated basis registered growth of 53% to Rs 1616.51 crore and net profit decline by 80% to Rs 93.12 crore. Excluding the sales from Axicrop and sales from sold Enzumes business, the net sales grew by 13% to Rs 1139.30 crore and profits declined by 81% to Rs 86.60 crore
- Axicrop contributed 37% to total sales for the quarter and 29% to year.
- Axicrop wins German AOK tender for Metformin with order worth of Rs 100 crore for next two year which would be expected to start supply by June’09.
- Profit of the company hit by Mark to Market losses of Rs 147.19 crore for the year and Rs 41.43 for the quarter.
- Minority interest loss of Rs 8.57 crore is due to loss in one of its subsidiary.
- R & D expenditure for the year increased by 27% to Rs 60 crore.
- Average realization per dollar is at Rs 45.
- Total India’s insulin Market size is Rs 450 crore per year. Of which plan insulin would be around Rs 300 crore and Analog is around Rs 150 crore.
- Oral Insulin IN105 enters into Phase III clinical trials.
- Sales revenue from Research Services grew by 28% to Rs 225 crore in FY’09.
- Syngene and Clinigene’s EBIDTA grew by 21% to Rs 70 crore but MTM hit the performance and posted losses of Rs 18 crore for the year.
- Syngene and Bristol Myers Squibb Company opened a fully dedicated research and development facility for Bristol Myers Squibb in Biocon Park, Bangalore.
- Tax rate for FY’10 would be around 10%.
- Indian branded formulation business (Retail business) for the year grew by 40% to Rs 100 crore.
- Licensing income for the quarter was stood at Rs 6.4 crore and for the year Rs 12.30 crore.
- Company received final approval for Glargine from DCGI to market in India.
- Balance sheet position as 31st March’09: Cash and bank balance – Rs 11.9 crore, Sundry debtors- Rs 367.10 crore, Inventories- Rs 319.20 crore and loans and advances- Rs 101.50 crore.
- Capex for FY’10 would be around Rs 100 crore.
- US President Obama requested US FDA to approve safe biogeneric and UH MHRA already gave product guide line for each bio-generic product. For capitalizing this opportunity, the company has expanded its research base. Expected to incur R & D expenditure of Rs 80-100 crore for FY’10.
- Company has hedged 25% future revenues with zero cost call option where downside is protected at around Rs 46 to a dollar or the upside is capped at around Rs 55 per dollar. It also hedged 75% of its revenues with put option with banks by paying some premium (which is undisclosed) where downside is protected at around Rs 50 and upside is not capped
- Expects to maintain same growth in revenues for FY’10.