Biocon (BIOCON) Q4 12/13 earnings summary

Executive summary

• FY13 consolidated revenue rose 18% YoY to ₹25,380 million, led by Research Services and Branded Formulations; EBITDA margin was 23% and PAT margin 20%.

• Strategic priorities included reaching US$1 billion revenue by 2018, shifting toward higher-value products and services, and expanding biologics, formulations and research services.

Financial highlights

• Consolidated revenue was ₹25,380 million vs ₹21,483 million; EBITDA was ₹5,957 million vs ₹5,791 million, and PAT increased to ₹5,089 million from ₹3,384 million.

• Adjusted for exceptional items, FY13 consolidated net profit was ₹3,430 million; reported PAT included ₹2,150 million of exceptional income from the insulin-analogs partnership and a ₹131 million impairment provision.

• Standalone revenue grew 23% to ₹19,895 million; EBITDA was ₹4,572 million and PAT ₹2,757 million, up 8% YoY.

• Consolidated operating cash flow was ₹4,712 million; capital expenditure was ₹3,586 million.

Outlook and guidance

• Revenue growth was expected to continue in FY14, driven by Research Services, Branded Formulations and Biosimilars; EBITDA margins were targeted to be maintained through portfolio optimization and cost control.

• The long-term target was US$1 billion revenue by 2018; Biosimilar Insulins and monoclonal antibodies were expected to contribute ~20% of revenue by then.

• FY14 priorities included launching ALZUMAb in India, expanding insulin reach in emerging markets, optimizing the API mix and containing costs; Malaysia’s insulin facility was targeted to start by 2015.

• First U.S. ANDA filing was expected by FY15; the identified ANDA pipeline of 20+ molecules addressed a stated market opportunity of nearly US$30 billion.