Biocon remains in the red

Higher costs at its Malaysia plant, production disruption due to plant modification to meet regulatory needs, regulatory and tender delays in emerging markets and pressure on its Active Pharmaceutical Ingredients (API) pricing led Biocon to report a lower profit in Q2FY18; this is the third consecutive quarter of lower earnings.  The company expects these pressures to ease only by end of current FY18.

The company posted a consolidated net profit at Rs.69 crore, down 53% on a 2% rise in revenue at Rs.969 crore. Its operating profit fell 24% to Rs.182 crore and margins declined from 24.5% to 18.8%.

In terms of segment-wise breakup, only the branded formulations did well with its revenue rising 29%; Research services too did well with a 11% increase in income. The other two – small molecules and biologics did not fare well, with the former reporting a 13% decline and latter remained flat.

Biocon has tanked big time today over 6% to Rs.343.50 the moment it opened for trade but has since then recovered to Rs.357 levels though remains in the red. Its 52-week low is at Rs.267.57 and high is at Rs.424.15.