Bangalore-based biopharmaceutical company Biocon's first quarter (April-June) profit is seen falling 5 percent year-on-year to Rs 119.6 crore while revenue may increase 15.3 percent to Rs 951.3 crore, according to average of estimates of analysts polled by CNBC-TV18. Earnings will be announced on July 21.
Growth may continue to be led by contract research (CRO) division (that comes under Syngene International - the listed entity). CRO growth in Q4 was 32 percent YoY at Rs 316 crore.
In Q1FY17, analysts expect CRO growth at around 25-30 percent and biopharma segment growth at around 10-15 percent (against 12 percent growth in Q4).
Biopharma sales growth may be led by better small molecule product mix, sales of insulins and launch of biosimilar Trastuzumab in emerging markets.
Factors to watch out for in Q1 would be margin, contract research business, R&D cost, pricing pressure in legacy API biz (especially statins), recovery in branded formulation (was flat in Q4 due to restructuring) and pick up in Middle East market (did well in Q4).
Analysts expect licensing income at around Rs 13-15 crore for June quarter.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) may increase 6 percent to Rs 216 crore but margin may contract by 180 basis points at 23 percent in Q1 YoY due to capacity constraints in insulin.
The stock gained over 50 percent from the level of Rs 480 on March 28, especially after Biocon received approval for insulin Glargine in Japan. Analysts say getting approval for insulin Glargine in a developed market means the company can receive approval in other emerging markets such as Brazil, Russia and developed markets like US & EU.
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