Biocon Q2 PAT may grow 3.2%, margin may stay over 20%: Poll

Pharmaceutical firm Biocon will announce its second quarter (July-September) results today. According to a CNBC-TV18 poll, operating profit margin of the company is likely to be maintained over 20 percent due to sales mix, which improved by 40 basis points in June quarter due to better product mix and lower R&D spend.

Profit after tax will increase with a slower pace (percentage wise) due to higher other income in a year ago quarter. It had received one off income of Rs 31 crore on account of compensation received from a few partners in second quarter FY13.

Analysts on an average expect profit after tax to grow 3.2 percent year-on-year to Rs 92.5 crore and revenues may rise 14 percent Y-o-Y to Rs 718 crore in three months period ended September 2013.

After excluding other income seen in a year ago period, revenues may jump around 20 percent Y-o-Y.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be flat at Rs 152.6 crore and operating profit margin may decline 270 basis points on yearly basis to 21.3 percent during September quarter.

What to watch out for

Biopharma division is expected to grow over 15 percent Y-o-Y, led by domestic formulation business and APIs while Clinical Research (R&D) Clingene & Syngene may grow more than 25-30 percent.

Analysts expect licensing income to boost revenue during September quarter, which is expected to be Rs 15-16 crore as against nil in a year ago period. In June quarter, licensing income was Rs 8 crore.