Biocon Q1 Results preview: PAT expected to fall 47% YoY due to rise in interest expenses

Biocon Q1 Results preview: Biocon, the biopharmaceutical company based in Bengaluru, is expected to report consolidated revenue of Rs 3,468 crore for the June quarter (Q1FY24), up 62 per cent on a year-on-year (YoY) basis, as per Zee Business Research. The company had posted a revenue of Rs 2,140 crore in the year-ago period. Its PAT (profit after tax), however, is expected to decline 47 per cent YoY to Rs 147 crore as compared to Rs 167 crore logged in the corresponding quarter of the previous fiscal.

The profit will be under pressure due to increasing interest expenses.

Biocon's earnings before interest, taxes, depreciation, and amortisation, or EBITDA, are seen at 825 crore, up 132 per cent YoY. It posted an EBITDA of Rs 356 crore in the year-ago quarter. EBITDA margin is estimated to come in at 24 per cent, up from 17 per cent in the June 2022 quarter. 

It must be noted that in November last year, Biocon's subsidiary Biocon Biologics announced the acquisition of the international biosimilars business of Viatris in a deal totalling $3 billion. Biocon's biosimilars segment's income growth is likely to see 2x growth. Its income is expected to reach nearly $252 million. The Generics segment is expected to see 23 per cent growth. Further, the integration of Viatris is also expected to aid growth. Besides, Pegfilgrastim, Trastuzumab, and Insulin Glargine are also expected to see good growth.

Biocon Q4 Results

The company logged a consolidated net profit of Rs 313 crore for the quarter ended March 2023 on the back of robust sales, as against a net profit of Rs 239 crore for the corresponding period a year ago. The company’s revenue grew 58.7 per cent to Rs 3,929 crore for the three-month period, which was estimated at Rs 3,694 crore. The company’s margin — a key measure of profitability for a business — increased to 26 per cent from 24.6 per cent a year ago, which was estimated at 23 per cent.