Biocon Q2: Analysts expect PAT flat at Rs 85.7 cr

Pharmaceutical company Biocon's consolidated profit after tax is expected to be flat at Rs 85.7 crore in the second quarter of FY13 as against Rs 86.3 crore in a year ago period due to higher depreciation and tax rate.

Analysts on an average feel revenues to grow by 17 percent to Rs 513 crore from Rs 598 crore during the same period.

Some analysts also expect topline growth to Rs 600 crore led by 1) new customer additions in contract research and manufacturing services (CRAMS) business and 2) Biopharma business.

In previous quarter, total sales grew by 30 percent YoY to Rs 577 crore led by Biopharma, Clinical Research Organization and rupee depreciation. Biopharma (ex-licensing) business rose by 29 percent to Rs 440 crore due to branded formulations (which rose 48 percent YoY) in June quarter.

Last quarter, CRAMS revenues grew by 41 percent to Rs 123 crore while growth from rupee depreciation was 15 percent. Domestic formulations went up by 48 percent YoY to Rs 86 crore.

Analysts expect licensing income to decline in September quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to go up marginally to Rs 138 crore from Rs 134 crore YoY.

EBITDA margin is estimated to shrink due to higher expenses on R&D on the biogeneric pipeline. In previous quarter, margin declined 400 basis points to 21.3 percent YoY owing to 440 basis points YoY increase in other expenses and higher R&D expenses.