By IANS
Bangalore : Indian biotechnology leader Biocon Ltd Thursday announced net profit of Rs.1.07 billion for the first six months of fiscal 2007-08, registering 27 percent growth over the same period a year ago, said company chairperson Kiran Mazumdar-Shaw.
Presenting the company’s financial highlights here, Mazumdar-Shaw told reporters consolidated income from sales in the first six months of this fiscal grew by 19 percent to Rs.5.5 billion from Rs.4.6 billion in the corresponding period last fiscal.
“Our operating margins grew by 31 percent to Rs.1.6 billion from Rs.1.2 billion in the same period a year ago. Biopharmaceuticals’ sales accounted for Rs.3.9 billion, while enzymes contributed Rs.460 million to total sales,” said Shaw.
The financial performance of Biocon includes that of its wholly owned subsidiaries Syngene International Ltd and Clinigene International Ltd, besides its 51-percent joint venture, Biocon Biopharmaceuticals Ltd.
Although research services by Syngene increased by 60 percent in dollar terms and 43 percent in rupee terms, profit before tax was impacted by rupee appreciation during the last six months.
“We have increased research and development expenditure to Rs.320 million from Rs.190 million in the same period last fiscal. We have also commenced phase one of validating human clinical data for the oral insulin programme at the European Association for the Study of Diabetes at Amsterdam in the Netherlands,” Shaw pointed out.
During the period under review, the company divested its enzymes division to Novozymes South Asia Ltd, a subsidiary of Novozymes A/S, Denmark, for Rs.4.7 billion.
“The divestment of enzymes business has given us financial muscle to mull strategic acquisitions to move up the value chain,” Shaw noted. She however declined to elaborate on the company’s buyout plans this fiscal.
The company’s branded formulations such as Insugen and BiomAb increased market share in domestic and overseas markets.
Neo-Biocon has also commenced operations in the Gulf region to hard sell the company’s products.
“We are confident of delivering growth and profitability despite challenges posed by dollar depreciation and the loss of enzyme income,” Shaw asserted.