Biocon Q3 preview: Firm likely to post profit of Rs 192 crore against a loss in Q3 FY23

Biocon, the mid-cap biopharma company, is scheduled to report its Q3 earnings on February 8. Zee Business Research desk estimates the company will log a consolidated PAT of Rs 192 crore for the December quarter of FY24 as against a loss of Rs 42 crore. In Q3 FY23, Kiran Mazumdar-led company reported an exceptional loss of Rs 271 crore.

Profit growth at the biotechnology major during the quarter is expected to remain slow given the higher finance or capital costs.

The top line at the company is estimated to grow 25 per cent YoY to Rs 3,690 crore for the quarter under review. The same stood at Rs 2,942 crore in the corresponding period of the previous fiscal year.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is also set to log a double-digit increase of 29 per cent in Q3 to Rs 830 crore as against Rs 646 crore logged in Q3 FY23. Analysts estimate profit margin, however, to likely increase to 23 per cent versus 22 per cent in the same period a year ago.

Analysts are also of the view that the biotech firm is likely to see robust income growth due to the integration of Viatris. Notably, in November last year, Biocon’s subsidiary Biocon Biologics Limited (BBL) announced the successful integration of Viatris' biosimilar business in 31 European countries.

Furthermore, while the company’s generic business is expected to remain stable, sales of biologics were seen to log a healthy growth of 40 per cent during the review period.

Moreover, there is a view that the weak results of Syngene, which is the company's global innovation-focused subsidiary, may weigh on the firm.

Investors can closely monitor the updates related to the facility purchased from Eywa Pharma.