Biocon group delivers healthy performance for FY 2007-08

Bangalore, Apr 22 (ANI/Business Wire India): Biocon Limited today announced its financial performance for the financial year ended March 31, 2008.

Performance highlights:

FY 2008 (April '07 - March '08) v/s FY 2006 (April '06 - March '07)

-- Consolidated revenue (excluding enzymes) increases 19% from Rs: 881 to Rs. 1,044 crores.

-- Operating margins at 31% for the year, an improvement of 2% over the previous fiscal.

-- PAT increases by 13% to Rs. 225 crores (excluding, net exceptional income) .

-- Earnings per share at Rs. 22.5 for the year.

-- R and D revenue expenditure increases by 26% to Rs. 48 crores.

-- Board recommends dividend of 60% (Rs. 3/- per share).

-- Board also recommends a Special Dividend of 40% (Rs. 2/- per share) pursuant to the divestment of the Enzymes business.

-- 1:1 Bonus Share issue recommended by the Board.

Profit growth has been maintained at the consolidated level despite the divestment of the enzymes business, currency appreciation and increased depreciation. We have a strong Balance Sheet with high reserves and Rs. 193 crores in net cash.

Revenues from research services grew 29 per cent to Rs. 176 crores from Rs.136 crores, contributing 16 per cent to consolidated revenues in FY 2008, but currency appreciation and capacity expansion for future demand kept operating margins flat.

Commenting on the results, Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Limited, said: "We are pleased with our overall performance and have delivered the highest profits to date. We have increased our capital expenditure to support the business expansion that we anticipate across the Group. We expect the year ahead to realize a good return on these investments especially at Syngene and Clinigene."

"We have a strong Balance Sheet which we will use for strategic acquisitions and investments.. The recent AxiCorp acquisition is a significant move that provides us key access to the European market. We wish to make similar inroads into other markets to expand our global footprint. We have delivered a 13 per cent increase in PAT despite a Rs: 27 crore increase in depreciation. The strong financial base enables us to recommend a 1:1 Bonus issue that we believe will improve market liquidity to support Biocon's growing profile as a bellwether stock in the Life Science sector," she added.

Dr. Arun Chandavarkar, Chief Operating Officer, Biocon Limited said, "Biocon's focus continues to be on deriving operational efficiencies as reflected in the improved EBITDA margins and in progressing its R and D pipeline of novel and bio-similar products through the complex stages of pre-clinical and clinical development. Divesting the enzyme business has enabled management to sharply focus on our bio/pharmaceutical business."

"We are pleased with the beach heads we have established in various countries either through direct investments or through strategic marketing partnerships; we are confident that these relationships will deliver as and when our development programs reach the launch stage.

We recognize the challenges that lie ahead in terms of broadening and deepening our skill base to deliver on these development programs but are confident of attracting and retaining the right talent. We are also conscious of the need to strike an optimum balance between short term profit growth and longer term R and D investments which will deliver reliable shareholder value," added Arun.

ANI