When I first saw the FY11 Q1 results of Biocon, I was really disappointed. But on taking a closer look, there were some positives as well. Although the standalone net profit was down from Rs 72.3 crores to Rs 60.4 crores, their consolidated net profit from continuing operations (their subsidiary had sold its subsidiary) was marginally up by 7% from Rs 65.22 crore to Rs 70.05 crore. These figures indicate two important things:
1) The domestic profitability has taken a hit
2) The subsidiaries, many of whom are foreign, have turned profitable
If we take a look at Q1 FY10 results, the standalone profit was Rs 72.3 crores as against a consolidated profit of Rs 65.22 crores. This indicates that the continuing operations of their subsidiaries had lost a total of almost Rs 7 crore, as against a profit of almost Rs 10 crore this year (Rs 60.4 Cr of standalone profit as against Rs 70.05 Cr standalone profit).
Another positive came from the segment results. The profits from CRAMS had increased almost two folds from Rs 14.6 Cr to Rs 27.99 Cr. This shows a significant increase in a very promising business area.
Despite these small positives, the result has been very disappointing, especially if you compare it QoQ instead of YoY. But I will still stay bullish on Biocon and would suggest to buy some shares when it falls further (Below 340).
1) The domestic profitability has taken a hit
2) The subsidiaries, many of whom are foreign, have turned profitable
If we take a look at Q1 FY10 results, the standalone profit was Rs 72.3 crores as against a consolidated profit of Rs 65.22 crores. This indicates that the continuing operations of their subsidiaries had lost a total of almost Rs 7 crore, as against a profit of almost Rs 10 crore this year (Rs 60.4 Cr of standalone profit as against Rs 70.05 Cr standalone profit).
Another positive came from the segment results. The profits from CRAMS had increased almost two folds from Rs 14.6 Cr to Rs 27.99 Cr. This shows a significant increase in a very promising business area.
Despite these small positives, the result has been very disappointing, especially if you compare it QoQ instead of YoY. But I will still stay bullish on Biocon and would suggest to buy some shares when it falls further (Below 340).
No comments:
Post a Comment