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Biocon Ltd (BOM:532523) (H1 2025) Earnings Call Highlights: Navigating Growth Amidst Challenges

In This Article:

  • Total Revenue: INR3,623 crore, flat year-on-year, 21% decline quarter-over-quarter on a reported basis.

  • Revenue from Operations: INR3,590 crore, up 8% year-on-year on an adjusted basis, 5% sequentially.

  • Biosimilars Revenue: INR2,182 crore, up 11% reported, 19% on a like-for-like basis.

  • Generics Revenue: INR624 crore, decline of 8% year-on-year and 5% sequentially.

  • Syngene Revenue: INR891 crore, down 2% year-on-year, up 13% sequentially.

  • Group Core EBITDA: INR992 crore, down 10% year-on-year, core operating margin of 28%.

  • Reported EBITDA: INR718 crore, margin of 20%.

  • Profit Before Tax and Exceptional Items: INR72 crore, down from INR238 crore last year.

  • Reported Net Loss: INR16 crore, adjusted loss at INR13 crore.

  • R&D Investment: INR200 crore, 17% of revenues excluding Syngene.

  • Biosimilars Core EBITDA: INR691 crore, margin of 32%.

  • Biosimilars Reported EBITDA: INR469 crore, margin of 21%.

  • Generics Core EBITDA: INR98 crore, margin of 15%.

  • Generics EBITDA: INR36 crore, margin of 6%.

  • Syngene EBITDA: INR261 crore, margin of 29%.

  • Syngene Profit Before Tax: INR137 crore, down 13% year-on-year.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Biocon Ltd (BOM:532523) reported operating revenue growth of 4%, with an 8% increase on a like-for-like basis after adjustments.

  • The biosimilars business showed healthy double-digit growth, with significant market share increases in the US for products like Ogivri and Fulphila.

  • Successful refinancing of long-term debt by Biocon Biologics through a bond issue and a new syndicated loan facility on improved terms.

  • Biosimilar revenue from operations grew 19% on an adjusted basis, reflecting strong underlying profitability.

  • Biocon Biologics continues to expand its global footprint, achieving double-digit growth in the UK and Mediterranean regions.

Negative Points

  • Overall performance was relatively muted due to continued pressures in the generic business and a marginal decline in Syngene's revenues.

  • The generics business faced an 8% year-on-year revenue decline, impacted by demand and pricing challenges.

  • Reported net loss for the quarter was INR16 crore, attributed to higher tax basis and geographical profit splits.

  • US FDA inspections at two API facilities resulted in observations, requiring corrective actions and awaiting feedback.

  • The company is facing challenges in ramping up market share in the Humira biosimilar market in the US.

Q & A Highlights

Q: Can you provide a breakdown of Biocon Biologics' revenue by region for the quarter? A: Kedar Upadhye, Chief Financial Officer, explained that approximately 40-41% of revenues come from North America, about 30% from Europe, and the remaining 30% from emerging markets.