India's biggest biotech firm Biocon reported a 12 per cent decline in its net profit to Rs 1.74 billion (US$38.6 million) for 2005-06 over the previous fiscal.

The Bangalore-based firm's total income however increased by 9 per cent to Rs 7.93 billion. Operating profits fell marginally by 2 per cent to Rs 2.34 billion.

Earnings Per Share for the year stood at Rs 17.40, Biocon said in a statement.

For the quarter ended March 31, 2006, profit after tax grew by 14.2 per cent to Rs 480 million compared to Rs 420 million in the year-ago period, it said. Revenues from the biopharmaceuticals and enzymes business grew 6.3 per cent to Rs 6.88 billion from Rs 6.47 billion, contributing 87 per cent to operating revenues during 2005-06. "I am pleased that we have sustained a healthy 30 per cent operating margin for the year 2005-06 despite a fiercely competitive environment," Biocon Chairman and Managing Director Kiran Mazumdar-Shaw said. She said the year ahead would continue to be challenging due to uncertainties in the market and the impact of depreciation at the company's new facilities at Biocon Park. However, the company expected its insulin to gain market share both in India and overseas markets, she said, adding this, together with branded formulations and research services would drive growth.

(www.indiadaily.com)