Syngene Q4 results: Net profit up 6% to Rs 189 cr, revenue declines 8%

Biocon arm Syngene International reported a profit after tax of Rs 189 crore (before exceptional items), up six per cent year-on-year for the fourth quarter of the financial year 2024. Reported revenue from operations for the fourth quarter declined eight per cent year-on-year to Rs 917 crore.

Syngene International reported Q4FY24 earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at Rs 333 crore, against Rs 337 crore year-on-year.

“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,” said Jonathan Hunt, managing director and chief executive officer, Syngene International Limited.

Furthermore, Syngene expressed optimism regarding the recent influx of funding into the US biotech sector. Anticipating a consequent surge in demand for research and development services, the company foresees revenue growth in the latter part of the year.

“We expect revenue growth in financial 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 financial year 2024 and profit after tax 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,” Hunt added.

“We had a strong start to the year which moderated in the third and fourth quarters resulting in a slower second half of the financial year. We continued to manage costs proactively to deliver consistent operating leverage and maintain Ebitda margin around the expected level. Our net cash flow generated from operating activities for the year was strong at Rs 1,042 crore, which fully funded the capital expenditure and the acquisition of the biologics manufacturing plant,” said Sibaji Biswas, chief financial officer and executive director, Syngene International.

In development services, a new capability for purifying and separating chiral compounds and highly potent active pharmaceutical ingredients (HPAPIs) was operationalised. HPAPIs are typically used in the treatment of serious diseases such as cancer where precise dosing is crucial. By offering purification and separation in-house, clients will benefit from accessing everything from initial synthesis to final purification in a single, seamless process.

The acquisition of Stelis Biopharma’s biologics manufacturing facility in Manufacturing Services has been successfully finalised. Repurposing efforts are progressing as scheduled, with qualification and facility modifications anticipated to conclude by the latter half of 2024. Upon completion, the facility will facilitate production of both drug substance and drug product.

Syngene continued to invest in its fully integrated therapeutic discovery and development for small molecules and biologics, SynVent, covering a range of therapeutic areas including oncology, gene therapy, central nervous system (CNS), and pain management for use in human and animal health.

Syngene International shares ended the day’s trade on BSE at Rs 694.2 apiece, down one per cent.

First Published: Apr 25 2024 | 12:43 AM IST