Wednesday, April 20 2005 11:14 Hrs (IST) - World Time -

Bangalore: Biotech firm Biocon today (Apr 20, 2005) reported a net profit of Rs 198 crore during 2004-2005, an increase of 42 per cent over Rs 139 crore in the previous fiscal.

The total income rose by 34 per cent to Rs 728 crore during the year from Rs 542 crore in 2003-2004.

"Even the increased capacity coming on stream in FY 05-06, we are confident of achieving healthy sales growth, despite pricing pressure on our statins (cholesterol reducing molecules) business. We will maintain the current levels of operating margins," Biocon Chairman and Managing Director Kiran Mazumdar Shaw said in a statement in Bangalore.

She said, however, profit for the year ahead would not grow as fast as sales. This, she said, would be partly attributable to an increased depreciation on the company's new facilities but more importantly the company plans to significantly increase R and D investment to support a discovery led research strategy.

"Our outlook for the year ahead is very positive. We expect statins immuno suppressants, insulin and branded formulations to deliver significant growth. Research services will also be a key growth driver," she said.

The company declared a dividend of Rs 2 per share of Rs 5.