Biocon net profit up 42% at Rs 198 cr

Biotech firm Biocon on Wednesday reported a net profit of Rs 198 crore (Rs 1.98 billion) during 2004-2005, an increase of 42 per cent over Rs 139 crore (Rs 1.39 billion) in the previous fiscal.

The total income during the year rose by 34 per cent to Rs 728 crore (Rs 7.28 billion) from Rs 542 crore (Rs 5.42 billion) in 2003-2004.

"With the increased capacity coming on stream in FY 2005-06, we are confident of achieving healthy sales growth, despite pricing pressure on our statins (cholestrol reducing molecules) business. We will maintain the current levels of operating margins," Kiran Mazumdar Shaw, Biocon chairperson and managing director said in a statement.

She said, however, profit for the year ahead would not grow as fast as sales. This, she said, would be partly attributable to an increased depreciation on the company's new facilities but more importantly the company planned to significantly increase research and development investment to support a discovery led research strategy.

"Our outlook for the year ahead is very positive. We expect statins, immuno suppresants, insulin and branded formulations to deliver significant growth. Research services will also be key growth drivers," she said.

The company declared a dividend of Rs 2 per share of Rs 5.