Biotech firm Biocon fell by two per cent on bourses after the company today reported nearly 9 per cent decline in its consolidated net profit for the first quarter of this fiscal.
During the day,the company stock tumbled as much as six per cent to an intra-day low of Rs 348.80 on the Bombay Stock Exchange and at Rs 348.40 on the National Stock Exchange.
Biocon said its consolidated net profit declined by 8.71 per cent to Rs 70.05 crore for the quarter ended June 30,primarily due to lower licensing income during the first quarter.
The company shares today opened on a bullish note on the Bombay Stock Exchange,but lost ground and fell into the negative zone on lower-than-expected quarterly numbers. At the close of today’s trading session,the market capitalisation of the company stood at Rs 7,272 crore,down from Rs 7,416 crore yesterday.
On the National Stock Exchange,the stock opened at Rs 370.65 before tumbling 6 per cent to its closing price of Rs 348.40.
Commenting on the stock,Jagannadham Thunuguntla,SMC Strategist and Head of Research,said the stock reacted to its first quarter numbers,which were below the market expectations.
On the volume front,as many as 4.85 lakh shares exchanged hands on the BSE and over 21.81 lakh shares were traded on the NSE.
Commenting on the results,Biocon CMD Kiran Mazumdar-Shaw said: “There has been lower licencing income recognition this quarter. This is as per the plan and is expected to ramp up in the quarters ahead. Inherent variability in licencing income linked to development and regulatory timelines requires this to be viewed on an annualised basis.”