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 double-digit growth, generics under pressure, and Syngene facing a slight decline.

• Q2 FY25 consolidated revenue from operations was Rs. 35,904 million, up from Rs. 34,623 million in Q2 FY24.

• Net profit for Q2 FY25 was Rs. 5,846 million, a significant increase from Rs. 1,727 million in Q2 FY24.

• Outlook for H2 is positive, expecting accelerating growth from Syngene, biosimilars, and generics, with new launches including GLP-1 generic in the UK.

• Successful refinancing of $1.1 billion long-term debt by Biocon Biologics via a $800 million bond and new syndicated loan, improving liquidity and financial flexibility.

Financial highlights

• Revenue from operations was ₹3,590 crore, up 8% year-on-year; total revenue was ₹3,623 crore.

• Core EBITDA at ₹992 crore (28% margin), down from ₹1,100 crore (32% margin) last year; reported EBITDA was ₹718 crore (20% margin).

• Net profit before exceptional items was a loss of ₹13 crore, compared to a profit of ₹142 crore last year; reported net profit was ₹3 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.

• Net cash from operating activities for H1 FY25 was Rs. 7,054 million.

Outlook and guidance

• H2 expected to see growth acceleration, with Syngene returning to growth, biosimilars maintaining momentum, and generics recovering with new launches.

• Generics recovery expected in H2, driven by launches like Liraglutide in the UK and injectables in the US.

• No quantitative full-year revenue guidance, but management reiterates transition to accelerated growth.