Biocon

Biocon posted a strong performance for Q4FY15 despite the exceptional income of Rs.105 crore via sale of shares in Syngene, its R&D arm. Consolidated net profit showed a jump of a whopping 122% at Rs.201 crore. And PBT before exceptional income rose 32% at Rs.143 crore.

Overall it has been a good operational performance, with total income going up 15% at Rs.830 crore with biopharma, which contributes 71% to the topline, showing a 11% rise, led by biopharma growing 12% and branded formulations in India rose 6%. Contract research  rose 27%. EBITDA came in at Rs.202 crore, up 5%. In Q4, it has not showed any interest outgo.

The company, last week filed its DRHP for Syngene with SEBI and an IPO is expected in the next couple of months. It will be offering shares through an offer for sale (OFS) route. Upto 22 million equity shares of face value of Rs 10 each will be offered for cash and at such premium as may be determined. The offer includes a reservation of 2 million equity shares for Biocon shareholders. This would prove to be a good trigger for the stock as money realized, to the tune of Rs.700-800 crore from this 10% stake sale in Syngene could help the company reduce its debt considerably.

Its $200 million Malaysian plant, the largest in Asia for insulin manufacture, is expected to be commissioned before end of FY16 and that could take the stock to indeed new heights.