21 October 2015
2QFY16 Results Update | Sector:
Healthcare
BSE SENSEX
27,288
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val (INR m)
Free float (%)
S&P CNX
8,252
BIOS IN
200.0
90.4/1.4
496 / 397
-2/2/-8
347
39.0
CMP: INR452
TP: INR460 (+2%)
Biocon
Sell
Revenue below estimate; earning recovery remains modest
Biocon’s PAT at INR3.1b was well ahead of estimates due to extraordinary income of
INR3.1b during 2Q; adjusted for the same, PAT was flat YoY at INR1.0b (14% lower
than our estimates). Revenue grew 11% YoY (6% miss) to INR8.3b, affected by weak
performance of the biopharma segment. EBITDA at INR1.9b was in line with estimates
as margins improved 80bp YoY to 22.8% (v/s est. 22%).
Biopharma continues to report sluggish growth:
Overall revenue grew 11% YoY to
INR8.3b, led by 30% YoY growth in contract research services while
biopharma/India businesses reported dismal performance (up 6/3% YoY).
Biopharma/India sales were affected by (1) pricing pressure on older API portfolio,
(2) higher exposure to Middle East (credit issues), (3) capacity constraints and (4)
portfolio rationalization in domestic business (more specialty focus). 2Q sales
included licensing income of INR20m.
Higher R&D activities to cap margin improvement:
2Q EBITDA margin at 22.8%
was up 80bp YoY due to 300bp YoY improvement in gross margins during the
quarter. Better product mix in biopharma business and higher contribution from
Syngene were the key drivers for margin expansion. However, we expect further
margin improvement to be constrained by higher R&D intensity on (a) ramp-up of
ANDA filings and (b) progression of biosimilar projects in clinical trials (five
molecules in Phase 3 clinical). We project EBITDA CAGR of 16.6% on stable
margins over FY15-17E (~23%).
Modest earning outlook limits upside:
We expect BIOS’ earnings outlook to remain
muted (15% EPS CAGR v/s ~20% for peers) as big investment projects like
biosimilars/Malaysia insulin plant are unlikely to generate significant revenue before
FY18. With weak return ratios (12.3% RoE—FY15) and low free cash flows (high capex
phase), valuation upside remains limited. Reiterate
Sell
with a target price of INR460
(16x on SEP’17E EPS).
Financials & Valuation (INR b)
Y/E Mar
Sales
EBITDA
Net Profit
EPS (INR)
2015
30.6
6.7
4.0
20.1
2016E 2017E
34.2
7.9
4.9
24.4
21.4
187.9
13.0
16.9
18.5
2.4
39.5
9.0
5.4
26.9
10.1
207.0
13.0
11.8
16.8
2.2
EPS Gr. (%) -2.8
BV/Sh. INR 163.5
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
12.3
12.5
22.5
2.8
Estimate change
TP change
Rating change
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 3982 5423
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Biocon
2Q Result analysis
Exhibit 1: Quarterly Snapshot (Revenue mix)
(INR m)
Revenue split
2QFY15
4,321
1,160
5,481
1,921
93
7,495
1QFY16
4,690
1,120
5,810
2,250
190
8,250
2QFY16
4,568
1,190
5,758
2,504
20
8,282
%YoY
5.7
2.6
5.1
30.3
(78.5)
10.5
%QoQ
(2.6)
6.3
(0.9)
11.3
(89.5)
0.4
FY15
17,632
4,300
21,932
8,228
433
30,593
FY16E
18,707
4,811
23,517
10,293
418
%YoY
6.1
11.9
7.2
25.1
(3.5)
Biopharma
India
Total Biopharma
CRO
Licensing income
Total revenues
34,229
11.9
Source: Company, MOSL
Exhibit 2: Quarterly Profit and Loss statement
(INR m)
Total revenues
Material cost
Gross profit
Gross margin (%)
Staff cost
% of sales
Other expense
% of sales
R&D expense
% of sales
EBITDA
EBITDA margin (%)
Depreciation
EBIT
Interest cost
Other income (net)
PBT
Income tax
Effective tax rate (%)
Reported PAT
Exceptional items (post tax)
Minority Interest
PAT (after MI)
Adj. PAT
1QFY15
7,495
3,514
3,981
53.1
1,253
16.7
730
9.7
350.0
4.7
1,648
22.0
542
1,106
50
231
1,287
218
16.9
1,069
-
49
1,020
1,020
4Q FY15
8,250
3,630
4,620
56.0
1,410
17.1
670
8.1
500.0
6.1
2,040
24.7
580
1,460
50
320
1,730
370
21.4
1,360
-
100
1,260
1,359
2QFY16
8,282
3,685
4,597
55.5
1,367
16.5
770
9.3
574.0
6.9
1,886
22.8
596
1,290
29
336
1,597
338
21.2
1,259
2,030
230
3,059
1,029
%YoY
10.5
4.9
15.5
239 bp
9.1
(21)bp
5.5
(44)bp
64.0
226 bp
14.4
78 bp
10.0
16.6
(42.0)
45.5
24.1
55.0
423 bp
17.8
-
369.4
199.9
0.9
%QoQ
0.4
1.5
(0.5)
(49)bp
(3.0)
(59)bp
14.9
118 bp
14.8
87 bp
(7.5)
(195)bp
2.8
(11.6)
(42.0)
5.0
(7.7)
(8.6)
(22)bp
(7.4)
-
130.0
142.8
(24.3)
FY15
30,592
12,561
18,031
58.9
5,334
17.4
4,022
13.1
2000.0
6.5
6,675
21.8
2,210
4,465
89
837
5,213
858
16.5
4,356
952
310
4,997
4,045
FY16E
34,242
15,013
19,229
56.2
5,573
16.3
3,475
10.1
2267.9
6.6
7,913
23.1
2,530
5,383
150
1,290
6,523
1,367
21.0
5,156
2,030
274
6,912
38.3
6,912
70.9
Source: Company, MOSL
%YoY
11.9
19.5
6.6
(278)bp
4.5
(116)bp
(13.6)
(300)bp
13.4
9 bp
18.5
129 bp
14.5
20.6
68.8
54.1
25.1
59.4
450 bp
18.4
21 October 2015
2

Biocon
Biopharma business underperforms
2Q Revenue growth at 10.5% YoY, 6% below our estimates, was affected by weak
performance of Biopharma business. Biopharma sales grew 5.7%YoY to INR4.5b, 8%
lower than estimates, due to (1) Pricing pressure on older API portfolio, (2) Higher
exposure to Middle east region (credit issue) and (3) Capacity constraints in Insulin
business. Going ahead, we believe improved traction in insulins and MAbs products
to lead 10-11% CAGR growth over FY15-18E.
India formulation business (14% of sales) also registered flat growth in 2Q, on
account of portfolio rationalization steps taken by the company, focuses on high
margin specialty brands. We expect India business to register 12-13% growth over
FY15-18E driven by high growth portfolio of Metabolics and Oncology division.
Exhibit 3: Quarterly performance (sales mix)
(INR m)
Bio-Pharma
% of sales
India Form.
% of sales
Contract Research
% of sales
Licensing Income
% of sales
Total Revenues
2QFY16
4,568
55.2
1,190
14.4
2,504
30.2
20
0.2
8,282
2QFY15
4,321
57.7
1,160
15.5
1,921
25.6
93
1.2
7,495
% YoY
5.7
2.6
30.3
-
10.5
1QFY15
4,690
56.8
1,120
13.6
2,250
27.3
190
2.3
8,250
% QoQ 2QFY16E
% var
-2.6
4,982
-8.3
56.5
6.3
1,227
-3.0
13.9
11.3
2,540
-1.4
28.8
-
63
-68.5
0.7
0.4
8,813
-6.0
Source: Company, MOSL
Exhibit 4: Biopharma sales trend (In USDm)
Biopharma ex. branded form. (USD m)
79
71
67
72
70
72
74
69
70
Exhibit 5: CRO business ramp-up (sales in USDm)
CRO division (USD m)
28
30
30
30
29
32
35
38
35
Source: Company, MOSL
Source: Company, MOSL
Increasing R&D outlay to cap margins expansion
2Q EBITDA at INR 1.9b (up 14% YoY) was in line with expectations as gross margin
improvement was offset by higher R&D expenses during this quarter. Gross margins
improved 300bp from 53% in 2QFY15 to 57% in 2QFY16, attributed to improving
product mix in Biopharma business.
However, R&D cost also increased 64%YoY to INR574m v/s INR350m in 2QFY15.
Increase in R&D spend is reflection of uptick in clinical activities during this quarter.
We believe that R&D intensity is likely to increase going ahead as five
biosimilar/novel projects has advanced into phase III clinical trials in 2Q. However,
the impact on P&L would be felt with a lag as the company capitalizes large part of
gross R&D spend (37% capitalized). We expect EBITDA margins to stay in the range
of 22.5-23.5% over next two years.
21 October 2015
3

Biocon
Exhibit 6: R&D cost as % of sales to increase going forward
R&D cost (%)
48
49
49
46
48
46
46
Raw material cost (%)
47
42
41
44
44
Exhibit 7: Core EBITDA margins at 23%
EBITDA margin (%) - w/o licensing income
EBITDA margin (%) - with licensing income
22
17
21
23
24
24
23
22
20
21
25
23
7
7
6
5
3
4
4
5
6
7
6
7
21
16
20
23
24
24
21
21
19
21
23
23
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: EBITDA growth quarterly trend (INR b)
EBITDA (INR b)
61.8
45.0
11.2
1.4
14.8
1.1
25.1
18.6
14.4
1.7
1.7
1.6
(2.4)
1.5
1.7
1.7
1.5
(9.7)
21.9
4.6
1.8
2.0
14.4
1.9
EBITDA growth (%)
Source: Company, MOSL
Exhibit 9: Higher R&D cost being capitalised
Gross R&D (INR m)
Rev R&D (INR m)
44.2
12.2
430
490
12.2
430
490
8.5
430
470
13.3
390
450
13.0
290
520
18.4
310
380
350
560
37.5
28.8
470
560
500
% R&D capitalised
46.2
44.0
36.6
574
200
230
660
1000
930
905
Source: Company, MOSL
Adjusted profits were 14% below our estimates
2Q net profits at INR 3.0b were overstated by extraordinary income (net basis) of
INR3.1b during this quarter. This quarter include (1) INR1b impairment charge on
account of weak visibility on the launch of Itolizumab in US region and (2) INR4.1b
exceptional income on the back of realized gain in Syngene stake sell. Adjusted for
both these items, PAT remained flat YoY at INR1.0b in 2Q, 14% below our estimate.
21 October 2015
4

Biocon
Exhibit 10: Earnings quarterly growth trend
35
8
19
PAT (INR m)
14
15
1130
(55)
917 467 935 1023 1050
1030 1020 908 1305 1260 1030
(55)
10
Growth (%)
(0)
16
(13)
22
-
8
Exhibit 11: Sales growth v/s PAT growth
Sales gr. (%)
23
3
35
22
19
24
14
10
15
15
3
10
2
(0)
PAT gr. (%)
9
15 22
16
(13)
15
-
11
Source: Company, MOSL
Source: Company, MOSL
Other key highlights
Malaysia facility
is expected to get commercialized by 2HFY17. Once it receives
approval from Local authority, the company will also stop capitalizing cost
(including interest) for Malaysia facility. Overall capital expenditure incurred is
estimated to be at INR12b for this plant.
Glargine Insulin:
Recruitment of patients has been completed for clinical trials
and Biocon expects to file this product in FY17. Similar as Lilly, Biocon is also
likely to file through 505(b)2 route in US market.
Partnered products:
Till date, five products have entered phase III clinical trials
that includes
-
Trastuzumab, Insulin glargine, Pegfilgrastim, Adalizumab and
Bevacizumab (RoW). The company is expected to file these products by FY17. It
is confident on the prospects of MAb portfolio and expects biosimilars product
to become predictable growth driver for the company.
Oral Insulin:
Biocon has received complete study report for IN-505 (Tregopil).
Itolizumab
– The company had purchased marketing rights of Itolizumab from
Cimab (for USD17m) in 2010. However, there were legal restrictions on the
commercialization of this product in US as innovator had developed this asset in
Cuba. With limited visibility on commercialization of this product in US/Canada
market, Biocon has taken impairment charge of INR1b for this product in
2QFY16.
21 October 2015
5

Biocon
Operating metrics
Exhibit 12: Key operating metrics
3QFY13 4QFY13
Revenue Mix (%)
Biopharma
India
Total Biopharma
CRO
Licensing income
Revenue Gr. (%)
Biopharma
India
Total Biopharma
CRO
Licensing income
Cost of sales (%)
Raw material
Staff cost
R&D cost
Other expenses
Tax Rate
Margins (%)
Gross Margins
EBITDA Margins
EBIT Margins
PAT margins
63.1
13.5
76.6
22.0
1.4
22.6
30.8
22.0
29.2
24.7
(69.9)
59.9
13.4
73.4
26.3
0.3
3.3
(0.8)
30.2
3.7
40.6
(95.7)
1QFY14
62.2
14.5
76.7
22.3
1.1
21.7
23.9
17.1
22.5
26.3
(45.3)
2QFY14 3QFY14
60.4
13.5
73.9
25.6
0.5
23.9
19.2
8.3
17.1
45.7
#DIV/0!
59.1
14.1
73.3
26.1
0.6
10.4
3.4
15.8
5.6
31.0
(54.5)
4QFY14
61.1
12.9
74.0
26.0
-
14.7
17.0
9.9
15.7
13.3
0.0
1QFY15 2QFY15
58.0
15.4
73.4
24.0
2.6
3.4
(3.5)
9.8
(1.0)
11.4
150.0
57.7
15.5
73.1
25.6
1.2
2.1
(2.6)
17.3
1.1
2.1
173.5
3QFY15
56.0
13.8
69.8
28.9
1.3
8.7
2.9
6.1
3.5
20.2
150.0
4QFY15
58.8
11.9
70.7
28.7
0.6
14.8
10.5
5.8
9.7
26.8
0.0
1QFY15 2QFY15
56.8
13.6
70.4
27.3
2.3
14.8
12.5
1.3
10.2
30.6
-
55.2
14.4
69.5
30.2
0.2
10.5
5.7
2.6
5.1
30.3
(78.5)
48.4
13.8
6.8
8.7
21.4
51.6
22.3
15.1
14.5
49.2
15.7
6.8
11.6
10.1
50.8
16.7
9.4
39.4
49.4
15.4
6.2
7.9
23.6
50.6
21.0
14.1
13.5
45.7
14.0
5.3
12.0
23.2
54.3
23.0
16.2
13.9
48.3
15.3
2.9
9.6
19.1
51.7
24.0
16.7
15.0
45.9
15.5
4.0
11.1
13.8
54.1
23.5
16.0
15.6
46.5
16.2
4.3
9.8
22.4
53.5
23.3
16.1
14.3
46.9
16.7
4.7
9.7
16.9
53.1
22.0
14.8
13.6
41.7
17.9
6.2
14.3
10.3
58.3
19.9
12.5
11.9
40.7
16.4
6.7
14.7
12.8
44.0
17.1
6.1
8.1
21.4
44.5
16.5
6.9
9.3
20.7
59.3
56.0
55.5
21.4
24.7
22.8
14.4
17.7
15.6
24.3
15.3
36.9
Source: Company; MOSL
21 October 2015
6

Biocon
Valuation and view
We expect BIOS earnings outlook to remain subdued (14% EPS CAGR over FY15-18E)
owing to (a) elevated R&D spend as molecules progress in clinical trials, (b) fixed
overheads at Malaysia facility (INR 12b spent) with no meaningful revenue
contribution till FY18E. While Biocon’s long term prospects in biosimilars space
continue to remain appealing, current valuations of 17x FY17E and 15x FY18E leave
limited valuation support. Maintain Sell rating with a target price of INR460.
We value BIOS at 16x Sep’17E EPS, at 25% discount to sector average P/E multiples
(1 year forward) which is justified noting:
Weak earnings outlook of 14-15% EPS CAGR over FY15-18E (vs 25%+ for peers).
Below-par returns ratios (RoE of 12%, RoCE of 12%).
We believe that the following factors pose risks to our thesis:
Out-licensing of Itolizumab and partnership for rh-insulin (in regulated markets)
are potential R&D triggers.
Milestone receipt upon regulatory progress of key biosimilar projects (MAbs,
insulin portfolio) could provide one-time upside.
Exhibit 13: P/E valuation band (10 years)
60
45
30
15
0
7.3
16.9
PE (x)
Peak(x)
Avg(x)
Min(x)
45.9
180
120
15.0
60
0
-60
1.7
-7.3
Exhibit 14: Premium relative to Sensex
Biocon PE Relative to Sensex PE (%)
LPA (%)
Source: Company, MOSL
Source: Company, MOSL
21 October 2015
7

Biocon
Story in charts
Exhibit 15: Sales to pick up in FY17-18E
Sales (INR b)
47
20
14
14
13
14
14,817
16,389
18,705
YoY growth (%)
21,380 22,367
23,950
Exhibit 16: Biopharma sales trend (In INR m)
30,823
27,035
5
7
11,799
24
28
-33
20
24
29
31
34
39
46
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 17: CRO business ramp-up (sales in INR m)
14,901
12,417
10,292
5,572
7,137
8,225
Exhibit 18: Return ratios trending lower with high capex
RoCE (%)
19.2
15.6
16.7
18.0
13.0
14.9
12.1
17.8
11.7
13.7
12.5
12.3
13.0
RoE (%)
16.9
11.8
13.0
12.4
13.3
2,807 3,180
4,101
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 19: R&D Expenses (annual trend)
R&D Expenses (INR m)
As a % of sales
Exhibit 20: EBITDA margin trend
EBITDA (INR m)
EBITDA Margin (%)
7.6%
4.3%
6.8%
4.6%
7.2%
6.5% 6.6% 6.8%
21.2
19.9
5
6
FY11
FY12
23.2
23.4
21.7
23.1
22.8
23.0
3.3%
20.0
5
FY13
7
FY14
7
8
9
11
784
FY10
1,180 1,566 1,640 1,312 2,000 2,268 2,778 3,393
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
5
FY10
FY15 FY16E FY17E FY18E
Source: Company, MOSL
21 October 2015
8

Biocon
Financials and valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Contract Research
Net Income
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Int. & Finance Charges
Other Income - Rec.
PBT
Tax
Tax Rate (%)
Minority Interest
Adjusted PAT
PAT
Change (%)
Margin (%)
E: MOSt Estimates
2012
16,389
4,101
20,490
-26.0
15,691
4,799
-18.2
23.4
1,744
3,055
122
993
3,926
541
13.8
0
3,385
3,385
-7.6
16.5
2013
18,704
5,572
24,276
18.5
19,423
4,853
1.1
20.0
1,793
3,060
81
3,123
6,101
975
16.0
38
3,271
5,088
50.3
21.0
2014
21,390
7,137
28,527
17.5
21,902
6,625
36.5
23.2
2,036
4,589
17
805
5,377
1,069
19.9
170
4,137
4,137
-18.7
14.5
2015
22,367
8,225
30,592
7.2
23,940
6,652
0.4
21.7
2,210
4,442
89
1,888
6,241
957
15.3
310
4,023
4,974
20.2
16.3
2016E
23,950
10,292
34,242
11.9
26,329
7,913
19.0
23.1
2,530
5,383
150
4,360
9,593
2,407
25.1
274
4,882
6,912
39.0
20.2
2017E
27,035
12,417
39,452
15.2
30,437
9,015
13.9
22.8
3,110
5,905
173
1,400
7,132
1,426
20.0
331
5,375
5,375
-22.2
13.6
(INR Million)
2018E
30,823
14,901
45,723
15.9
35,185
10,538
16.9
23.0
3,672
6,866
186
1,400
8,080
1,616
20.0
397
6,066
6,066
12.9
13.3
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Other Reserves
Net Worth
Loans
Minority Interest
Deferred liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Intangibles
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans & Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
2011
1,000
19,318
20,328
3,342
377
497
24,544
18,096
6,328
11,769
1,796
4,605
2,342
15,030
4,137
5,124
4,414
1,355
10,997
9,855
1,141
4,033
24,544
2012
1,000
21,715
22,724
2,571
38
5754
31,087
20,590
7,852
12,738
2,863
5,563
1,235
16,973
3,783
4,917
5,233
3,040
8,285
6,170
2,115
8,688
31,087
2013
1,000
25,937
26,946
2,488
653
4689
34,776
24,961
9,672
15,289
2,054
5,866
1,290
19,662
3,984
5,097
6,729
3,852
9,385
6,920
2,465
10,277
34,776
2014
1,000
29,258
30,267
8,497
823
6558
46,145
27,218
11,711
15,507
10,831
7,649
1,442
22,077
3,766
5,998
8,044
4,269
11,361
9,595
1,766
10,716
46,145
2015
1,000
31,697
32,706
10,306
1,722
5934
50,667
29,750
13,943
15,807
14,939
2,303
2,320
28,384
4,527
7,705
9,375
6,777
13,087
11,355
1,732
15,297
50,667
(INR Million)
2016E
1,000
35,504
36,513
12,806
1,722
5521
56,562
37,597
16,367
21,230
14,939
3,337
2,552
29,008
5,501
8,002
10,003
5,501
14,504
11,003
3,501
14,504
56,562
2017E
1,000
39,727
40,736
13,806
1,722
5211
61,475
45,297
19,352
25,945
14,939
1,306
2,807
32,956
6,250
9,091
11,364
6,250
16,478
12,500
3,977
16,478
61,475
21 October 2015
9

Biocon
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Fixed Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Working Capital (Days)
Leverage Ratio (x)
Current ratio
Debt/Equity
2011
18.3
26.2
101.6
4.5
27.0
25.4
17.8
4.6
3.2
14.9
1.0
18.0
19.2
2.4
68
54
-5
1.4
0.2
2012
16.9
25.6
113.6
5.0
34.3
27.5
18.2
4.1
4.1
17.7
1.1
14.9
13.0
1.7
88
67
62
2.0
0.1
2013
16.4
34.4
134.7
7.5
34.5
28.5
13.5
3.5
3.4
17.1
1.6
12.1
17.8
1.7
77
60
53
2.1
0.1
2014
20.7
30.9
151.3
5.0
28.3
22.5
15.1
3.1
3.0
13.0
1.1
13.7
11.7
1.9
77
48
34
1.9
0.3
2015
20.1
35.9
163.5
5.0
23.5
23.2
13.0
2.9
3.0
13.8
1.1
12.3
12.5
2.0
92
54
71
2.2
0.3
2016E
26.9
39.0
182.5
6.7
29.3
17.3
11.9
2.6
2.5
11.0
1.4
14.7
12.9
2.0
80
55
45
2.0
0.4
2017E
29.8
44.8
203.6
7.5
29.3
15.6
10.4
2.3
2.3
9.7
1.6
14.7
13.3
1.8
80
55
45
2.0
0.3
Consolidated Cash Flow Statement
Y/E March
Oper. Profit/(Loss) before Tax
Interest/Dividends Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
(Incr)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Change in Net Worth
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2011
5,867
429
-733
4,102
9,666
-2,735
6,931
-915
-3,649
76
-1,830
-257
-991
-3,002
3,015
1,399
4,414
2012
4,799
993
4,716
-3,836
6,673
-3,781
2,892
149
-3,632
174
-1,111
-122
-1,162
-2,221
819
4,414
5,233
2013
4,853
3,123
-2,040
-1,910
4,025
-3,535
490
-358
-3,893
2,706
494
-81
-1,755
1,364
1,496
5,233
6,729
2014E
6,625
805
800
876
9,106
-11,031
-1,925
-1,935
-12,966
354
6,009
-17
-1,170
5,175
1,315
6,729
8,044
2015
6,652
1,888
-1,581
-3,251
3,709
-6,618
-2,910
4,468
-2,151
-414
2,397
-89
-1,170
724
2,282
8,044
10,326
(INR Million)
2016E
8,448
1,290
-1,829
1,422
9,331
-7,847
1,484
-1,266
-9,113
0
2,215
-231
-1,574
410
628
9,375
10,003
2017E
9,747
1,400
-1,889
-613
8,645
-7,700
945
1,777
-5,923
0
652
-266
-1,746
-1,360
1,361
10,003
11,364
21 October 2015
10

Biocon
Corporate profile: Biocon
Company description
Biocon is an integrated biotechnology company
encompassing all the three critical stages of drug
development - drug discovery, development and
manufacturing, and commercialization of bio-
pharmaceuticals. With over 25 years of expertise in
fermentation technology, the company has built a
strong presence in lucrative high-growth segments
like statins, immuno-suppressants and anti-
diabetes.
Exhibit 21: Sensex rebased
Exhibit 22: Shareholding pattern (%)
Jun-15
Promoter
DII
FII
Others
61.0
8.3
11.6
19.1
Mar-15
61.0
8.4
10.7
19.9
Jun-14
61.0
6.0
14.0
19.0
Exhibit 23: Top holders
Holder Name
Franklin Templeton Investment Funds
LIC of India
Kiran Mazumdar Shaw
Templeton Developing Markets Trust
Murali Krishnan K N
% Holding
2.9
2.5
1.9
1.3
1.1
Note: FII Includes depository receipts
Exhibit 24: Top management
Name
Kiran Mazumdar Shaw
John Shaw
Arun Suresh Chandavarkar
Designation
Chairperson & MD
Vice Chairman
Joint MD & CEO
Exhibit 25: Directors
Name
Kiran Mazumdar Shaw
John Shaw
Arun Suresh Chandavarkar*
Mary Harney*
Bala S Manian
Ravi Mazumdar*
Name
Russell Walls*
Suresh N Talwar*
Charles L Cooney*
Daniel M Bradbury
Catherine Rosenberg
Peter Bains
*Independent
Exhibit 26: Auditors
Name
S R Batliboi & Associates LLP
Rao Murthy & Associates
Type
Statutory
Cost Auditor
Exhibit 27: MOSL forecast v/s consensus
EPS (INR)
FY16
FY17
MOSL
forecast
26.9
29.8
Consensus
forecast
22.8
27.0
Variation (%)
18.1
10.4
21 October 2015
11

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BIOCON
No
No
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