Biocon records 4 percent drop in quarterly profit
Indian biotechnology giant, Biocom has reported a fall of 4 percent in its quarterly profit mainly due to increases expenses on higher energy costs and wages.
The company said that its consolidated net profit fell to 857 million rupees in the second quarter of the financial year compared to 892.2 million in the year ago period. However, the company sees an opportunity in strong demand from branded formulations.
The drop in profits was largely expected in the markets since the Bangalore-based firm sold its stake in its German arm Axicorp. The German unit had contributed 73 million rupees to the profit in the second quarter of the last year.
The energy costs to the company rose 14 percent to 226.8 million rupees, while wages paid increased by 34 percent to 778.3 million rupees, according to the company. The consolidated quarterly sales increased by 21 percent to 5.08 billion rupees backed by licensing and developing fees worth 365 million rupees.
The branded formulations segment of the company grew 37 percent, while research services business grew 20 percent, the company said.