Biocon's FY08 net profit up 12.5 percent, declares 1:1 share bonus
India's leading biotechnology company, Biocon Ltd. has posted a 12.5 percent rise in net profit for the fiscal year ended March 31, 2008, and has boosted market confidence by saying it expects good returns on its investment in the coming years.
For the full year, the biotechnology major posted a net profit of Rs.225 crore ($56.25 million) compared to Rs.200 crore ($50 million) a year earlier, as total revenues rose to Rs.1044 crore ($261 million) from Rs.881 crore ($220.25 million). The numbers included one-off gains worth Rs.239 crore ($59.75 million), the company said.
For the three months ended March 31, 2008, net profit increased 7.6 percent to Rs.65.3 crore ($16.32 million) from Rs.60.7 crore ($15.17 million) a year earlier.
However, sales dropped 4 percent to Rs.267 crore ($66.75 million), the Bangalore-based company said.
Better sales of insulin and increased research services offset the decline in revenue due to the sale of the enzymes unit in October last year and a stronger rupee, M.B. Chinappa, vice president of finance, Biocon, said.
The enzymes unit was sold to Denmark's Novozymes for $115 million.
"Divesting the enzyme business has enabled management to sharply focus on our biopharmaceutical business," Arun Chandravarkar, COO, Biocon, said in a statement.
According to Biocon chairperson, Kiran Mazumdar-Shaw, the economic slowdown in the US presents an opportunity for the company to expand their "contract research unit as companies in the US are under pressure to cut down on their R&D spend."
"However, this year will be challenging in terms of higher cost due to increased capital expenditure," she added.
The company has declared a 100 percent dividend equivalent to Rs.5 per share, which includes a 40 percent special dividend, pursuant to the divestment of its enzymes business. It has also declared a bonus offer of one free share for every one held by stockholders.
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