BIOCON Announces Quarterly Results (2QFY21); Net Profit Down 23.9%

Thu, 29 Oct

BIOCON has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

BIOCON Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	15,722	16,713	17,448	4.4%	11.0%
Other income	Rs m	384	183	155	-15.3%	-59.6%
Turnover	Rs m	16,106	16,896	17,603	4.2%	9.3%
Expenses	Rs m	11,694	12,580	13,534	7.6%	15.7%
Gross profit	Rs m	4,703	4,133	3,914	-5.3%	-16.8%
Depreciation	Rs m	1,316	1,668	1,777	6.5%	35.0%
Interest	Rs m	138	125	65	-48.0%	-52.9%
Profit before tax	Rs m	3,633	2,523	2,227	-11.7%	-38.7%
Tax	Rs m	1,001	809	223	-72.4%	-77.7%
Profit after tax	Rs m	2,632	1,714	2,004	16.9%	-23.9%
Gross profit margin	%	29.9	24.7	22.4
Effective tax rate	%	27.6	32.1	10.0
Net profit margin	%	16.3	10.1	11.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 11.0% on a year-on-year (YoY) basis. The expenses were up by 15.7% YoY during the same period.
• The company's operating profit declined by 16.8% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 22.4% in 2QFY21 as against 29.9% in 2QFY20.
• Depreciation charges increased by 35.0% and finance costs declined by 52.9% YoY, respectively.
• Other income declined by 59.6% YoY during the quarter.
• Net profit for the quarter declined by 23.9% YoY. Net profit margins during the quarter declined from 16.3% in 2QFY20 to 11.4% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.6% QoQ during the same period.
• The company's operating profit declined by 5.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 22.4% in 2QFY21 as against 24.7% in 1QFY20.
• Net profit for the quarter increased by 16.9% QoQ, while net profit margins increased from 10.1% in 1QFY20 to 11.4% in 2QFY21.

To see how BIOCON has performed over the last eight quarters,please visit here.

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BIOCON Share Price Performance

Over the last one year, BIOCON share price has moved up from Rs 244.1 to Rs 408.1, registering a Gain of Rs 164.0 or around 67.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,405.5 (up 0.0%). Over the last one year it has moved up from 13,101.5 to 19,405.5, a gain of 6,304 points (up 48.1%).

Overall, the S&P BSE SENSEX is up 1.4% over the year.

Current Valuations

At the current price of Rs 408.1, the price to earnings (P/E) ratio of BIOCON stands at 31.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.0 times.