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 Q1FY25 results:

• Revenue from operations: Rs 790 million (decreased by 2% YoY)
• Revenue: Rs 808 million (decreased by 3% YoY)
• Reported EBITDA: Rs 188 million (decreased by 20% YoY)
• Reported EBITDA margin (%): 23% (down from 28% in Q1FY24)
• PAT before exceptional item: Rs 55 million (decreased by 42% YoY)
• PAT Margin (%): 7% (down from 11% in Q1FY24)
• Reported PAT: Rs 76 million (decreased by 19% YoY)
• Reported PAT Margin (%): 9% (down from 11% in Q1FY24)

Commenting on the first quarter, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “First quarter performance was broadly flat, in line with our expectations, reflecting the dip in funding for US biotechs that has impacted our sector over the last two years. However, the value of US biotech funding has seen a marked improvement in the first half of 2024. It will take a while for this funding to flow through into outsourcing activities and Syngene is in a strong position to capture a significant share of the upturn in biotech spending in the months ahead.”

Sibaji Biswas, Executive Director and Chief Financial Officer, Syngene International added, “The current industry dynamics, particularly the geopolitical shifts, present a substantial opportunity for our organization. We continue to generate strong cash flows and our balance sheet is robust. We are investing in technology and capabilities that will position us favorably to leverage the opportunity and capture an increased market share.

Based on the current dynamics, we are on track to hit our guidance range for the year with momentum expected to build in the second half of the year.”

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