Biocon Q2 net profit at Rs 216 cr

Biotechnology major Biocon on Wednesday reported a net profit of Rs 215.7 crore for the quarter ended September 30, 2019. The company had posted a net profit of Rs 354.7 crore for the corresponding period of the previous fiscal, including a one-time gain of Rs 171 crore as company fair valued its investment in US-based Equillium, Biocon said in a BSE filing.

Consolidated total income of the company stood at Rs 1,610.6 crore for the quarter under consideration as against Rs 1,375.4 crore for the same period year ago. "A robust growth of 40 per cent by Biologics and 23 per cent by Small Molecules, coupled with a steady performance by the Research Services business drove the consolidated revenue for the quarter to Rs 1,611 crore, reporting a growth of 17 per cent year-on-year," Biocon Chairperson and MD Kiran Mazumdar-Shaw said.

Reported net profit for the second quarter is lower on a year-on-year basis due to an exceptional income of Rs 171 crore reported in the previous fiscal, she added. "We have increased investments in R&D for portfolio expansion as well as for high quality talent acquisition to enable independent management of Biocon Biologics, Small Molecules and Novels businesses under the new organizational structure," Mazumdar-Shaw said.

These costs have led to net profit (adjusted for exceptional item) of Rs 189 crore, marginally higher than last year and positions the company for a strong future, she added. In a separate filing, the company said the tenure of Arun Suresh Chandavarkar as CEO and Joint MD will end on November 30, 2019. The board has approved elevation of company's CFO and President- Finance Siddharth Mittal to the position of CEO and Joint MD for a period of five years commencing from December 1, 2019, it added.

Shares of Biocon Ltd closed at Rs 258.25 on BSE, up 0.51 per cent.

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