Biocon records 12.42% growth in net profits during first quarter
India's largest biotechnology company by revenue, Biocon has recorded a growth of 12.42 per cent in consolidated net profits to Rs 78.80 crore during the first quarter of the financial year compared to the same quarter in the previous year but recorded a fall of 19 per cent from the previous quarter.
The EBIDTA of the company fell 11 per cent to Rs 139 crore compared to the same quarter in the previous year but recorded a growth of 5 per cent from the previous quarter. Chief managing director (CMD) Kiran Mazumdar Shaw said that the fall in profit from the sequential basis was mainly due to the company's investment in its research and development activities.
"Investors have to look at Biocon in a holistic way and not compare us with the usual pharma story. Do not penalize us for a drop in EBIDTA because our business has to be R&D driven," said Shaw.
The company, which is based in the southern city of Bangalore, increased its R&D investments by 75 per cent compared to the same quarter in the previous year. The company had opened a new Integrated Research and Development Centre in the city to boost its research and development activities.