InvestorQ : Why did Biocon report fall in profits in the Sep-20 quarter?
sarah Leo made post

Why did Biocon report fall in profits in the Sep-20 quarter?

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Rashi Mehra answered.
1 month ago
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Biocon sales increased by 11.33% at Rs.1745 crore while the operating profits were sharply down by 21.2% at Rs.213.70 crore and net profits were lower by 24% at Rs.200 crore. As a result, the OPM contracted by 500 bps to 12.25% while the NPM was lower at 11.49%.

Supply chain disruptions in the quarter caused higher raw material cost in the Sep-20 quarter leading to lower profits at both levels. As a result the net cash generated by operating activities actually halved during the first half of the year.

The Bio similars with 38% share remained the largest revenue vertical and profit source for Biocon in the Sep-20 quarter. Generics accounted for 33% of the revenues. Biocon is one of the companies playing a key role in the proposed manufacture and distribution of Remdesivir.

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