Biocon Q3 Results: Revenue up 9% YoY but misses estimates; exceptional loss weighs on profit

Biocon reported a mixed performance for the December quarter, with revenue and operating profit missing street estimates even as net profit rose year-on-year on a low base.

Net profit came in at ₹143.8 crore, below the CNBC-TV18 poll estimate of ₹167.5 crore, but sharply higher than ₹25.1 crore reported in the year-ago quarter. The company recorded a one-time exceptional loss of ₹293.4 crore during the quarter.

Revenue stood at ₹4,173 crore, missing the estimate of ₹4,556.2 crore, though it grew 9.2%

from ₹3,821 crore a year earlier. EBITDA rose 11% year-on-year to ₹833.6 crore from ₹751 crore, but fell short of the estimated ₹923.7 crore. EBITDA margin was 20%, marginally below the 20.3% estimate, compared with 19.7% in the corresponding quarter last year.

Shares of Biocon closed at ₹376.20 on the NSE ahead of the results announcement.

Biologics integration

Separately, the board granted in-principle approval to acquire the remaining ~2% stake in Biocon Biologics Limited (BBL), which would make it a wholly owned subsidiary. The move follows earlier acquisitions that raised Biocon’s stake in BBL to around 98% on a fully diluted basis.

The remaining stake will be acquired from employees and other shareholders holding equity through stock option plans.

Earlier last week, Fitch Ratings revised the outlook on BBL’s Long-Term Foreign-Currency Issuer Default Rating to Positive from Stable, while affirming the rating at ‘BB-’, citing improving financial metrics at parent Biocon Limited. Fitch also affirmed the ‘BB’ rating on BBL’s $800 million secured notes.