Biocon profit soars 42%

India's largest biotech firm Biocon Ltd said its net profit increased by 42 per cent to Rs 198 crore and revenues rose from Rs 728 crore in ...

India’s largest biotech firm Biocon Ltd said its net profit increased by 42 per cent to Rs 198 crore and revenues rose from Rs 728 crore in 2004-05 from Rs 542 crore.

The company said its operating profit at 33 per cent, moves up to Rs 239 crore from Rs 180 crore while net margins expand from 26 per cent to 27 per cent. In a statement, the company said its earnings per share was Rs 19.8 for the year, while it announced a dividend of 40 per cent (Rs. 2 per share) as recommended by the board.

Biocon Chairman and Managing Director Kiran Mazumdar-Shaw told reporters here that profit growth would be lower due to higher depreciation for the firm’s new factories and ‘‘more importantly Biocon’s plans to significantly increase R&D investment to support discovery-led research strategy,’’ Shaw said.

Story continues below this ad

She did not reveal fourth quarter earnings, citing that the biotech industry had a different business model than the services-led software sector. ’’Biotech should not be evaluated on quarterly basis. We should be evaluated on an annualised basis. You will see lumpy growth in these kind of business,’’ Shaw said.

Biocon’s exports jumped to Rs 442 crore over Rs 340 crore in the previous fiscal, while domestic business shot up to Rs 271 crore from Rs 201 crore. ’’Our outlook for the year ahead is very positive. We expect statins, immuno suppresants, insulin and branded formulations to deliver significant growth. Research services will also be a key growth driver,’’ she said, but did not reveal any financial outlook for this fiscal.

Biocon closed at Rs 409.10 on the BSE on Wednesday.