This is the biggest biotech company of India and there has always been a certain sense of positive vibe around the company. Hence it was very reassuring to the see the company bounce back with vigour in first quarter ended 30th June 2009 after the dismal performance it had shown in Q4FY09.
For Q1FY10, consolidated net sales of the company rose, YoY, by % to Rs.498.45 crore. The revenue includes that from its German subsidiary AxiCorp, which has finally started giving returns since it came on board last year. Its contribution to the revenue has been at Rs.190 crore of the total revenue,which did not figure in last year’s financials.
Getting Axicorp into the fold is a good decision, as this subsidiary will add to the bottomline of Biocon once its starts commercial production of its insulin drug, which is expected to happen by early 2011. Once it gets the marketing authorization in Europe, Axicorp will be its base from that entire continent.
In Q1FY10, PAT increased to Rs.57.55 crore, thus registering a huge jump of 283% and if we look at the standalone performance, the rise has been 47%. By getting the lid on MTM losses, which were the main culprit, pulling down the margins last fiscal, is now finally left behind. It also managed to bring down its interest cost by 59% to Rs.75 lakhs. So the increase in revenue, no MTM loss and reduction in interest outgo, all together helped the company’s bottomline in current Q1.
The stock was buzzing yesterday on news of the company planning to launch its insulin drug in early 2011. Once this happens, the company will hit big time even in the international markets as this drug has been predicted to have a growth potential of over 15% in 2010-11. Pen-like injections, syringes and pumps dominate the market, and needle-free methods of delivering the drug would become a huge hit. The company, which currently sells the conventionally administered insulin in India, aims to increase its share of the domestic market to 50% from the present 15% in the next five years.
Hold on to the stock and if you are looking at long-term investments, buy into Biocon at every dip.
Source: www.premiuminvestments.in (By S P Tulsian)
For Q1FY10, consolidated net sales of the company rose, YoY, by % to Rs.498.45 crore. The revenue includes that from its German subsidiary AxiCorp, which has finally started giving returns since it came on board last year. Its contribution to the revenue has been at Rs.190 crore of the total revenue,which did not figure in last year’s financials.
Getting Axicorp into the fold is a good decision, as this subsidiary will add to the bottomline of Biocon once its starts commercial production of its insulin drug, which is expected to happen by early 2011. Once it gets the marketing authorization in Europe, Axicorp will be its base from that entire continent.
In Q1FY10, PAT increased to Rs.57.55 crore, thus registering a huge jump of 283% and if we look at the standalone performance, the rise has been 47%. By getting the lid on MTM losses, which were the main culprit, pulling down the margins last fiscal, is now finally left behind. It also managed to bring down its interest cost by 59% to Rs.75 lakhs. So the increase in revenue, no MTM loss and reduction in interest outgo, all together helped the company’s bottomline in current Q1.
The stock was buzzing yesterday on news of the company planning to launch its insulin drug in early 2011. Once this happens, the company will hit big time even in the international markets as this drug has been predicted to have a growth potential of over 15% in 2010-11. Pen-like injections, syringes and pumps dominate the market, and needle-free methods of delivering the drug would become a huge hit. The company, which currently sells the conventionally administered insulin in India, aims to increase its share of the domestic market to 50% from the present 15% in the next five years.
Hold on to the stock and if you are looking at long-term investments, buy into Biocon at every dip.
Source: www.premiuminvestments.in (By S P Tulsian)
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