Biocon Ltd Q2FY11 Result Update
Ø Biocon registered strong 17% YoY increase in revenues with across-theboard growth in all core businesses like Insulins, Immunosuppressants,
Statins and Branded Formulations. Quarter revenues increased by ~INR 1 bn to INR 6.8 bn on YoY basis.
Ø EBITDA increased 27% YoY and 9% QoQ to ~INR 1448 mn in Q2 FY11. EBITDA margin improved by 164 bps to 21.3% on YoY basis, due to
reduction in operating expense.
Ø Net Profit also improved by 20.4% YoY and 16.3% QoQ to ~INR 892 mn. Slower growth was seen due to reduction in other income. PAT margin
improved marginally to 13.1% from 12.8% same period last year.
Outlook & Valuation
Stock is currently trading at 22x its FY12E earnings. We rerate the stock to BUY with a fresh price target of INR 560.
Thanks & Regards,
Unicon Wealth Research