Shares of Biocon rose 4% on the Bombay Stock Exchange (BSE) to end the day at Rs 239 despite the company reporting lower quarterly and annual net profit figures.
Biocon’s net profit for the fourth quarter ended March fell 3% to Rs 98 crore from Rs 101 crore in the corresponding quarter last year, though quarterly revenues were up 30% to Rs 610 crore from Rs 471 crore in the corresponding quarter last year.
The decline in net profit has been attributed to an increase in other expenses, by 68% to Rs 135 crore in the quarter ended March 31 from R80 crore in the corresponding quarter last year.
Intra-day, the scrip touched its 52-week low, falling to R226 before recovering towards the close of the trading session.
The company’s yearly net profit also showed a decline, down by 8% to R338 crore from R368 crore in financial year 2010-11. Revenues were up by 16% to Rs 2,087 crore from Rs 1,806 crore in the financial year 2010-11.
“The increase in Biocon’s share price was due to the higher than expected net profit, by about R10 crore, which negated the impact of the sharp rise in other expenditure,” said Ranjit Kapadia, senior vice-president Centrum Broking.