BIOCON Announces Quarterly Results (1QFY20); Net Profit Down 11.5%

Mon, 29 Jul

BIOCON has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

BIOCON Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	11,238	7,639	4,808	-37.1%	-57.2%
Other income	Rs m	688	139	253	82.0%	-63.2%
Turnover	Rs m	11,926	7,778	5,061	-34.9%	-57.6%
Expenses	Rs m	8,860	6,654	4,074	-38.8%	-54.0%
Gross profit	Rs m	2,378	985	1,554	57.8%	-34.7%
Depreciation	Rs m	991	375	240	-36.0%	-75.8%
Interest	Rs m	176	6	5	-16.7%	-97.2%
Profit before tax	Rs m	1,899	743	1,562	110.2%	-17.7%
Tax	Rs m	521	38	342	800.0%	-34.4%
Profit after tax	Rs m	1,378	705	1,220	73.0%	-11.5%
Gross profit margin	%	21.2	12.9	32.3
Effective tax rate	%	27.4	5.1	21.9
Net profit margin	%	11.6	9.1	24.1

Year-on-Year Performance:

• The company's operating income during the quarter fell 57.2% on a year-on-year (YoY) basis. The expenses were down by 54.0% YoY during the same period.
• The company's operating profit declined by 34.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.3% in 1QFY20 as against 21.2% in 1QFY19.
• Depreciation charges declined by 75.8% and finance costs declined by 97.2% YoY, respectively.
• Other income declined by 63.2% YoY during the quarter.
• Net profit for the quarter declined by 11.5% YoY. Net profit margins during the quarter increased from 11.6% in 1QFY19 to 24.1% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 37.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 38.8% QoQ during the same period.
• The company's operating profit increased by 57.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.3% in 1QFY20 as against 12.9% in 4QFY19.
• Net profit for the quarter increased by 73.0% QoQ, while net profit margins increased from 9.1% in 4QFY19 to 24.1% in 1QFY20.

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

BIOCON Share Price Performance

Over the last one year,BIOCON share price has moved down from Rs 293.4 to Rs 236.8, registering a Loss of Rs 56.6 or around 19.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,774.7 (down 1.4%). Over the last one year it has moved down from 14,027.7 to 12,774.7, a gain of 1,253 points (down 8.9%).

Overall, the S&P BSE SENSEX is up 1.7% over the year.

Current Valuations

At the current price of Rs 236.8, the price to earnings (P/E) ratio of BIOCON stands at 17.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.7 times.