Biocon tanks on disappointing Q3

Biocon fell today morning after it declared its Q3FY15 performance. From yesterday’s close of Rs.426.15, it opened lower at Rs.421.50 and went down to the days low at Rs.411, a decline of 3.5%.

The company posted a 13% (YoY) dip in net profit for the quarter at Rs.91 crore though revenues were up 8% at Rs.779 crore. Bio-pharmaceuticals contributed Rs 541 crore to the revenues, research services contributed Rs 220 crore during the quarter.

The market was too disappointed with the performance, ignoring the other announcement that it plans to offload 10-15% stake in Syngene form its current 85.54% stake, using the offer for sale route to list the company on the bourses. It has given no definite timeline for the listing, stating that “listing of Syngene will depend on regulatory approvals and market conditions.”