Biocon (BIOCON) Q2 24/25 earnings summary

Executive summary

• Group operating revenue grew 4% year-on-year, or 8% on a like-for-like basis, with biosimilars showing strong double-digit growth, offset by continued pressure in generics and a slight decline in Syngene revenues.

• Q2 FY25 performance was muted but aligned with expectations, with double-digit revenue growth in Biosimilars, ongoing pressures in Generics, and a slight decline in Research Services year-over-year.

• Net profit for the quarter was Rs. 5,846 million, a significant increase from Rs. 1,727 million in Q2 FY24.

• Successful refinancing of Biocon Biologics' $1.1 billion long-term debt via a bond issue and syndicated loan on improved terms, strengthening liquidity and financial flexibility.

• Major gains from business divestments and investment revaluation boosted results.

Financial highlights

• Group total revenue was INR 3,623 crore, flat year-on-year, but down 21% sequentially; adjusted revenue grew 7% year-on-year and 3% sequentially.

• Revenue from operations reached ₹3,590 crore, up 8% year-on-year and 5% sequentially on an adjusted basis.

• Core EBITDA stood at ₹992 crore (28% margin), down 10% year-on-year; reported EBITDA was ₹718 crore (20% margin), down 20% year-on-year.

• Profit before tax and exceptional items was INR 72 crore (vs. INR 238 crore last year); reported net loss was INR 16 crore, adjusted loss INR 13 crore.

• Cash and cash equivalents at the end of September 2024 stood at Rs. 13,226 million, up from Rs. 4,000 million at March 2024.

Outlook and guidance

• H2 FY25 expected to see accelerating growth, with Syngene returning to growth, biosimilars maintaining momentum, and generics recovering, driven by new launches including GLP-1 in the UK.

• Free cash flows anticipated to improve as CapEx cycles moderate and business growth resumes.

• R&D spend for Biocon Biologics to remain in the 7%-9% of revenue range for the full year.

• The group remains in compliance with all debt covenants as of September 30, 2024.