Profit Falls 66%, Misses Estimates

Biocon Ltd.’s second-quarter profit fell year-on-year due to a tax write-off, missing forecasts.

Net profit of the Bengaluru-based drugmaker fell 66% year-on-year to Rs 47 crore in the three months through September, according to its exchange filing. That compares with the Rs 173-crore consensus estimate of analysts tracked by Bloomberg.

The after-tax profit was impacted by the company’s decision to adopt the new tax regime notified u/s 115BAA of the Income Tax Act, 1961. That prompted the company to write off a balance of Rs 107 crore in the quarter towards minimum alternate tax, which can no longer be carried forward.

Profit fell 68% sequentially as well.

Biocon Q2 Highlights (YoY)

• Revenue rose 26% to Rs 2,320 crore, against the estimated Rs 2,305 crore.

• Operating profit was up 6% to Rs 471 crore, compared with the Rs 446-crore forecast.

• Operating margin stood at 20.3% against 24.2% a year ago, and an estimate of 21%.

Shares of Biocon closed 1.94% higher before the results were announced, compared with a 0.28% decline in the benchmark Sensex.