Biocon's profit is expected to fall 55 percent to Rs 137.2 crore in July-September quarter compared with Rs 305.9 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Profit in year-ago period was boosted by Rs 203 crore exceptional income on account of IPO proceeds of Syngene International and impairment charge for Itolizumab. After adjusting for the same, profit stood at Rs 103 crore in Q2FY16. Margin expansion may support adjusted profitability in Q2.
Revenue is seen rising 19 percent to Rs 984.2 crore in the quarter ended September 2016 compared with Rs 828.5 crore in corresponding period of last fiscal. Operating profit is likely to jump 23 percent to Rs 232.3 crore and margin may expand 80 basis points to 23.6 percent on yearly basis (but may decline from 26 percent on sequential basis).
Revenue growth may primarily be led by research division or Syngene International. Biologics segment may see traction on account of biosimilar launches in newer markets.
Branded formulations may see around 12-15 percent growth (against 15 percent growth in Q1 on the back of growth in key brands). Small molecule business can grow 10 percent (against 8.5 percent growth in Q1 as company got approvals in new products in EU and emerging markets).
Analysts expect licensing income of around Rs 13-15 crore for the quarter while R&D cost is likely to be around 6.8-7 percent of sales.
The stock rallied 80 percent year-to-date on news that company received approval for insulin Glargine in Japan and EU regulator accepted Mylan and Biocon's submission for review of biosimilar cancer drug Tastuzumab which has a market size of USD 7 billion.