Biocon - Q1FY21 First Cut - ICICI Securities

(CMP - Rs. 430, MCap - Rs. 51636 crore)

Biocon's Q1FY21 revenue was in line with our estimates whereas profitability was higher due to better than expected operational performance.

Q1FY21 earnings summary

- Revenues grew 14% YoY to Rs. 1671 crore (I-direct estimate: Rs. 1651 crore) mainly due to 18.9% YoY growth in Biosimilars to Rs. 692 crore. The Generics segment grew 16.1% YoY to Rs. 599 crore. Research Services segment remained flat YoY at Rs. 422 crore

- EBITDA margins contracted 512 bps YoY to 24.7% (I-direct estimate: 22.2%) mainly due to lower gross margins and higher R&D costs. EBITDA declined 5.5% YoY to Rs. 413 crore as against I-direct estimate of Rs. 366 crore. Delta vis-a-vis I-direct estimates was on account of better than expected gross margin performance and lower R&D costs

- Adjusted net profit declined 27.6% YoY to Rs. 149 crore (I-direct estimate: Rs. 127 crore). Delta vis-à-vis EBITDA was due to higher depreciation and lower other income

Timely launches and ramp up of biosimilars in the developed as well as emerging markets and Syngene's performances remain key levers for the company. We will come out with an update post discussion with management.

Shares of BIOCON LTD. was last trading in BSE at Rs.430.3 as compared to the previous close of Rs. 431. The total number of shares traded during the day was 457450 in over 8080 trades.

The stock hit an intraday high of Rs. 438.3 and intraday low of 424. The net turnover during the day was Rs. 197806400.

Source : Equity Bulls

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