Biocon’s shares plunged 5.5% in early trading on October 31 after reporting a steep 84% drop in net profit for the July-September quarter. The drugmaker’s Q2 net profit fell to Rs 27.1 crore from Rs 172 crore year-over-year, driven by a decrease in EBITDA margins to 19%, compared to 21% in the same quarter last year.
Despite these challenges, Biocon’s revenue rose by 4% to Rs 3,590.4 crore, supported by strong growth in its biologics arm, Biocon Biologics, which recorded a 19% increase in revenue. The biologics division reported Rs 691 crore in core EBITDA, with a margin of 32%, buoyed by gains in the US oncology and insulins markets.
Analysts remain cautious: Nuvama Institutional Equities and Motilal Oswal both maintained neutral ratings, citing ongoing USFDA compliance issues and awaiting further biosimilar launches. Goldman Sachs retained a ‘buy’ rating with a target price of Rs 350, although it noted margin pressures due to lower gross margins and operating leverage. At 09:35 am, Biocon shares were trading at Rs 312.20 on the NSE
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Source: Moneycontrol
News Desk
