- 25 Apr 2024
- ICICI Securities
Syngene Q4FY24 / FY24- Mixed numbers with lower-than-expected sales but better margins
SYNGENE - 681 Change: -6.75 (-0.98 %)News: Sales de-grew ~9% YoY to Rs 917 crore as Discovery services segment (~30% of the sales) continued to face challenges in the US biotech space due to difficult funding environment. Development & Manufacturing segment (~40% of the sales) on the other hand did relatively better. EBITDA was flat YoY at Rs 316 crore with margins improving ~290 bps at 34.5% tracking strong GPM of ~78%. PAT grew 5% YoY to Rs 112 crore. For FY24 Sales grew 9% to Rs 3489 crore while EBITDA and PAT grew 11% and 20% to Rs 1014 crore and Rs 509 crore, respectively.
Views: Like Q3, the performance during the quarter was impacted slowdown in Discovery services segment. The margins however, were better than expected probably on account of better products mix. The management expects some reversal in the funding trend in the coming quarters. Nonetheless, the FY25 revenue growth guidance of high single digit to low double dight seems too conservative.
Impact: Neutral