Company Update : Biocon Ltd By Motilal Oswal Financial Services Ltd
Operationally in-line, higher tax outgo leads to miss on earnings
* BIOS 3QFY25 revenues grew 6% YoY to INR38.2b (est. INR37.1b).
* Revenue growth was led by:
* Research services (24% of sales) grew 11% YoY to INR9.4b.
* Biosimilars (58% of sales) declined 8% YoY to INR2.3b.
* Generics sales declined 2% YoY to INR6.9b (18% of sales).
* Gross Margin (GM) contracted 140bp YoY to 62%.
* EBITDA margin expanded 370bp YoY to 19.7% (est: 19.5%), as lower R&D/other expenses (-390bp/-490bp YoY as a % of sales) were offset by higher employee costs (+370bp YoY as % of sales).
* The EBITDA margin for Biocon Biologics stood at 21.3% for 3QFY25 (down 1220bp YoY/20bp QoQ).
* Meanwhile, the EBITDA margin for Syngene was 30.1% for the quarter (up 290bp YoY/150bp QoQ basis).
* The Generic business registered a negative EBITDA margin of 2.8% during the quarter, improved on a YoY basis and sequentially from -52.4%/-5.9%.
* EBITDA grew 30.3% YoY to INR7.5b (est: INR7.2b) for the quarter.
* After adjusting a one-off gain of INR180m, the company reported an Adj. profit of INR160m vs a loss of INR1.7b in 3QFY24 (est. PAT: INR715m).
* During 9MFY25, Revenue/EBITDA grew 3%/1% YoY to INR108b/INR20.6b. The company reported an Adj. loss of INR1b vs profit of INR742m last year.
* Revenue/EBITDA/PAT missed BBG estimates by 3%/11%/87%.
Key highlights
* Biosimilars recorded a marginal profit of INR7m vs a loss of INR1.5b in 3QFY24.
* Generics business recorded a loss before taxes of INR135m in 3QFY25 vs a profit of INR495m in 3QFY24.
* Research services’ PBT margin stood at 19.2% (up 250bp YoY/up 380bp QoQ) for 3QFY25.
* During the quarter, the company and its partner, Zentiva, obtained an EU Decentralized Procedure (DCP) approval for Liraglutide (Saxenda® and Victoza®).
* The company received a USFDA approval for YESINTEK™ (Ustekinumab-kfce) and is preparing for a Feb’25 launch.
* During the third quarter, 14 launches of key commercialized products were accomplished across EMs.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
