For the three month period ended June 2011, Biocon’s consolidated net profit declined around 9% to Rs 70.05 crore as compared to the same period of last year.
The company’s net sales remained up by more than 10% to Rs 441.68 crore.
The earnings disappointed the street leading to more than 4% slump in the biotechnology firm’s shares during the early trade.
At 10:30 hrs, Biocon scrip remained down by 2.8% to rule at Rs 360.15 on NSE.
The company stated that the outcomes for the year-ago quarter comprised Rs 11.52 crore in profit from performances of AxiCorp gmbh that has since been sold.
During the month of April, Biocon SA had decided to sell its 70% equity stake in the German drug distribution arm.
Exclusive of the discontinued functioning, Biocon’s net profit surged 7.4% during the quarter under review.
Consolidated operating profit margin stayed flat at 27.5% year-on-year.
Biocon stated that there was a “healthy” augmentation in profit from its core manufacturing and services businesses, but there was lower licensing income recognition during Apr-June period.
Murali Krishnan, president, group finance stated, “Licensing income from our partnered programmes will see a high degree of variability given the inherent nature of licensing recognition that is linked to development and regulatory timelines.”
The company added that the licensing revenue is likely to strengthen during the coming quarters.
During April-June period, while income from Biocon’s biopharma biz surged 8% y-o-y, domestic branded formulations biz augmented 28%.