- 24 Oct 2024
- ICICI Securities
SYNGENE Q2FY25 – YOY NUMBERS FLAT BUT STRONG SEQUENTIAL RECOVERY
News: Sales de-grew ~2% YoY, in line with the management’s guidance of flat growth. However, sales improved ~13% QoQ to ₹ 891 crore, likely to be driven by recovery Discovery services segment (~30% of the sales) on the back of collaborations on pilot projects with large and mid-sized biopharma clients. Development & Manufacturing segment (~40% of the sales) traction was driven by sustained delivery in biologics manufacturing and a higher number of process development projects. EBITDA declined ~4% YoY but improved 44% QoQ to ₹ 245 crore while margins dropped ~45 bps YoY but improved 597 bps QoQ to 27.5% driven by GPM improvement of ~300 bps to 73.4%.
Views: As per management, the company is witnessing increased requests for proposal (RFPs), on-site visits and more than 60 audits in the first 6 months of the year, a 36% increase compared to the same period last year. Buoyed by the recovery in Q2 the management has maintained YoY revenue growth guidance of high single digit.
Impact: Positive