Syngene International Ltd share Price Today

Syngene is a contract research, development and manufacturing organisation catering mainly to global innovator pharma/chemical companies offering integrated scientific services from early discovery to commercial supply.

• Syngene serves these players, which outsource some or substantial part of their business in the product development life cycle and operates via full time equipment (FTE) and fee for services (FFS) models

• Discovery services: FTE engagements with high renewability; Dedicated services: long-term strategic alliances that last usually five years or more, Development and manufacturing: FFS engagements, which increase in volume/scale over time

In line sales with beat on margins.

• Revenues grew 31.2% YoY to ₹ 994.4 crore

• EBITDA grew 27.2% YoY to ₹ 318.3 crore whereas margins declined 101 bps YoY to 32%

• Net profit during the quarter grew 20.9% YoY to ₹ 178.7 crore

Pharmaceuticals company Syngene International announced Q4FY24 & FY24 results:

Q4FY24 & FY24 Financial Highlights:

• Full-year revenue for FY24 increased by 9% to Rs 3,489 crore, with profit after tax (PAT) before exceptional items grew by 12% to Rs 519 crore compared to the previous fiscal year.
• Fourth quarter revenue saw a decline of 8% YoY to Rs 917 crore, but PAT increased by 6% to Rs 189 crore for the same period.
• EBITDA for FY24 was reported at Rs 1,105 crore, a 10% increase from the last year.
• EBITDA margin remained stable at 31% for the full financial year.
• The fourth quarter EBITDA margin improved by 298 basis points YoY to 34.6%.
• Full-year PAT after exceptional items for FY24 was up by 10% to Rs 510 crore over the previous year.
• PAT margin was consistent at 14% for both FY24 and FY23.

Outlook and Projections:
- Revenue growth for fiscal year 2025 is projected to be in the high single digits to low double digits, with a similar EBITDA margin as    FY24 and single-digit PAT growth.

Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “While the fourth quarter performance came in lower than expected, the underlying driver - reduced demand for research and development services within US biotech stemming from a difficult funding environment - is well understood and already showing positive signs of recovery.

Despite the business environment, we delivered growth during the year. This resilience is the result of our broad operating span and the investments made to establish our development and manufacturing divisions with biologics, in particular, delivering a strong performance throughout the year.

I’m encouraged by the recent step up in new funding into US biotech and expect this to drive a recovery in demand for research and development services translating into revenue growth in the latter part of the year.

Looking ahead, we expect revenue growth in fiscal year 2025 to be in the range of high single digits to low double digits with momentum building up during the year. We expect the EBITDA margin to be similar to the level delivered in fiscal year 2024 and PAT growth in single digits. The long-term indicators for the sector are positive and I am confident that we will continue to perform well in the long term.”

Sibaji Biswas, Chief Financial Officer and Executive Director, Syngene International said, “We had a strong start to the year which moderated in the third and fourth quarters resulting in a slower second half of the fiscal year. We continued to manage costs proactively to deliver consistent operating leverage and maintain EBITDA margin around the expected level. Our net cashflow generated from operating activities for the year was strong at Rs 1,042 crore, which fully funded the capex and the acquisition of the biologics manufacturing plant.

For fiscal year 2024, the Board of Directors has recommended a final dividend of Rs.1.25 per share, an increase of 150% over last year’s core dividend of 50 paise per share, subject to shareholders approval.

As demand picks up in the year ahead, we will continue to strategically invest in areas that strengthen our position as a leading integrated provider of research, development and manufacturing services.”

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