Syngene Posts Impressive Performance in Third Quarter Report

Mumbai, January 24, 2025: Syngene International Limited today announced its third quarter financial results. Reported revenue from operations was up by 11% year-on-year to Rs. 944 crores and increased sequentially by 6% from the prior quarter. Reported profit after tax, after exceptional items, was up 18% year-on-year to Rs. 131 crores.

Commenting on the quarter, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “Syngene’s third quarter performance saw a return to growth across all business divisions that sets us up well for the next quarter.

Our Discovery Services division saw the initial “China+1” pilot projects, with large and mid-size pharma companies, starting to convert into longer term contracts. This underscores Syngene’s ability to build strong partnerships through a combination of great science and high operating and quality standards. Now, our focus is on further business development and building the sales pipeline. The quarter also saw positive momentum in our CDMO division led by biologics.

Growth in the quarter suggests that market dynamics, particularly in US biotech, are stabilising, albeit later than expected.”

Deepak Jain, Chief Financial Officer, Syngene International Limited added, “The third quarter performance delivered year-on-year growth. Reported profit after tax (before exceptional items) for the quarter grew by 14% supported by operating EBITDA margins that came in at 30.1%, up from 27.1% in the previous year. We continued to focus on investing in digital initiatives, new technologies and commercial capabilities to drive growth.”

Business updates

Third quarter performance was marked by growth in the Research Services as well as CDMO business with increased traction in biologics.

Discovery Services converted initial pilot projects into full-fledged contracts, which should contribute to growth into next year. This indicates increased confidence in Syngene’s capabilities and quality of delivery.

Development and Manufacturing Services delivered steady performance driven by biologics with repeat orders from existing customers and new collaborations on integrated projects that cover the scope from drug development to clinical stage manufacturing.

During this quarter, Syngene achieved a milestone by becoming the first company in the Indian pharma and life sciences industry to earn the 5S certification (5S is a cyclical methodology: sort, set in order, shine, standardize, sustain the cycle) for the biologics quality control laboratory. Awarded through a joint evaluation by the Union of Japanese Scientists and Engineers (JUSE) and the Quality Circle Forum of India (QCFI), the certification recognizes Syngene’s laboratory designs and practices, which have led to better workplace organization, increased productivity, enhanced safety, improved quality control and fewer errors.

Guidance: Growth observed in the quarter indicates that market dynamics, particularly within the US biotech sector, are stabilizing. However, the recovery in demand, which was expected in the second half of the year, experienced a delay of approximately 8 to 12 weeks. Syngene has returned to growth in this quarter and foresees the growth momentum continuing into the fourth quarter of the financial year. Despite the challenges faced in the first half of the year, the Company expects to close the full year with single-digit revenue growth and a flat PAT. EBITDA guidance remains unchanged.

Earnings call

Syngene will host an investor call at 6.00 pm IST on January 23, 2025, where the senior management will discuss the Company’s performance and answer questions from participants. Please dial the numbers provided below ten minutes ahead of the scheduled start time to participate in this conference call. The dial-in number for this call is +91 22 6280 1279/ +91 22 7115 8180. Other toll numbers are listed in the conference call invitation which is posted on the Company website www.syngeneintl.com. The operator will provide instructions on asking questions before the start of the call. A replay of this call will also be available on the website and until 30 January 2025, on +91 22 71945757, Playback ID: 83711. We will post the transcript of the conference call on the Company website within seven working days of the investor conference call.

Leave a Reply

Your email address will not be published. Required fields are marked *