Company Update Dr. Reddy's Lab - Myiris.com - Personal finance ...

Key Financials – Quarterly
Biocon Confluence: Pharma; Pre-conference note
Company Description
From being a predominantly fermentation based APIs and enzymes manufacturer, the
company has emerged as a R&D based biotechnology company having developed its own
proprietary products as well as offering contract research services to global pharmaceutical
majors. Biocon is the India’s largest biotechnology company with a presence in
biopharmaceuticals, custom research (Syngene) and clinical research (Clinigene). Biocon
sold its enzymes business to Novozymes, Denmark –the world’s leading industrial enzyme
producer for $102m in July’07.
The company’s product offering includes the world’s first recombinant human insulin
Insugen. It is the leading player in statins and exports over 80% of its production,
commands over 20% global market share and derives over 30% of its revenues from this
business. Biocon caters to regulated markets like US and Europe and is one of the largest
exporters of Lovastatin to the US. The company manufactures all four statins namely:
Lovastatin, Simvastatin, Pravastatin and Atorvastatin by fermentation process, which
requires high technological skills.
Rs mn 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 YoY Gr. QoQ Gr.
Revenues 4204 7281 7016 4417 5084 21.0 15.1
Other Operating Income 11.8 17.2 16 17.9 49.9 322.9 178.8
Other Income 135 79 133 105 110 (18.6) 4.0
Total Income 4350 7377 7165 4540 5244 20.5 15.5
Total Expenditure 2907 5597 5581 3213 3750 29.0 16.7
Consumption of RM 1692 3632 3932 1891 2142 26.6 13.3
as % of sales 40.2 49.9 56.0 42.8 42.1 - -
Employee Cost 581 811 820 693 778 33.9 12.4
as % of sales 13.8 11.1 11.7 15.7 15.3 - -
Other expenditure 634 1154 830 630 830 30.9 31.8
as % of sales 15.1 15.9 11.8 14.3 16.3 - -
EBITDA 1443 1780 1584 1327 1494 3.5 12.6
Interest 62 66 57 57 20 (67.4) (64.4)
EBDT 1382 1714 1527 1270 1474 6.7 16.1
Depreciation 379 406 396 451 429 13.3 (4.8)
Minority Interest 0 0 0 0 0 - -
PBT 1003 1308 1131 820 1045 4.2 27.5
Tax 111 291 111 119 188 69.9 57.7
Reported Profit before EOI 892 1017 1021 701 857 (3.9) 22.3
EOI 0 10 13 0 0 - -
Reported Profit 892 1008 1008 701 857 (3.9) 22.3
EPS 4.57 5.15 5.16 3.58 4.38 (4.2) 22.3
Margins (%) (bps) (bps)
EBIDTA 34.3 24.4 22.6 30.0 29.4 -494 -65
EBIT 25.3 18.9 16.9 19.8 21.0 -437 111
EBT 21.0 14.0 15.0 16.0 17.0 -400 100
PAT 21.2 13.8 14.4 15.9 16.9 -437 100
Effective Tax rate 11.0 22.2 9.8 14.6 18.0 696 345
Emkay Research 17 November 2011 10