Biocon Q1: Analysts expect net to rise 6% at Rs 83.8 cr

Biocon will declare its results on Thursday. Analysts on an average expect the pharmaceutical company's consolidated profit after tax to grow by 6 percent year-on-year to Rs 83.8 crore, according to CNBC-TV18 poll.

Revenues are expected to go up by 15% to Rs 664 crore in April-June quarter from Rs 577 crore reported in a year ago period, driven by more than 20 growth in the CRO division and the Biopharma division at 13-16 percent Y-o-Y.

Earnings before interest, tax, depreciation & amortisation (EBITDA) may increase 13 percent Y-o-Y to Rs 138.7 crore and operating profit margin is expected to be at 21 percent in June quarter as against 21.3 percent in corresponding quarter of last fiscal.

Margins could shrink due to higher R&D costs and adverse sales mix on account of falling profits of the Statin portfolio.

Guidance for FY14: Biocon expects R&D costs to increase.

Analysts feel the revenue should keep pace with R&D investments.

Licensing income is expected to recover with a growth of 52 percent Y-o-Y to Rs 21.1 crore during the quarter.

Investors should watch out for: 1) Traction in the insulin initiative in the RoW, 2) Ramp up in CRO, 3) Contribution from immunosuppressants, and 4) Branded formulations.