Bicon - Biocon FY08 net profit at Rs225 cr, board approves bonus

The rise in profit is despite a Rs27 crore jump in depreciation. Revenue from research services grew 29% to Rs176 crore during FY08

Biocon Limited posted a net profit of Rs225 crore for the financial year ended March 2008, an increase of 13% over the previous corresponding period.

Operating margins at 31% for the year showed an improvement of 2% over the previous fiscal. The Earnings Per Share (EPS) stands at Rs22.5 for the year.

The Board has recommended a dividend of 60% (Rs3 per share) and a special dividend of 40% (Rs2 per share) pursuant to the divestment of the Enzymes business besides recommending a 1:1 bonus.

“We have delivered a 13% increase in PAT despite Rs27 crore increase in depreciation,” said Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Limited.

During the period under review, revenues from research services grew 29% to Rs176 crore from Rs136 crore, contributing 16 % to consolidated revenues in FY 2008. However, currency appreciation and capacity expansion for future demand kept operating margins flat.

“The recent AxiCorp acquisition is a significant move that provides us key access to the European market. We wish to make similar inroads into other markets to expand our global footprint,” the CMD added.

Link to the article: http://www.livemint.com/2008/04/22105612/Biocon-FY08-net-profit-at-Rs22.html