Syngene Reports Q1 FY25 Results: Revenue Declines By 2%
The profit after tax declined by 19 per cent year-on-year to Rs 76 crores
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Syngene International in a press statement on Wednesday revealed its first quarter results, reporting a 2 per cent year-on-year decline in revenue from operations to Rs 790 crores. The profit after tax declined by 19 per cent year-on-year to Rs 76 crores.
Jonathan Hunt, Managing Director and Chief Executive Officer commented on the performance, stating, “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, added, “The current industry dynamics, particularly the geopolitical shifts, present a substantial opportunity for our organisation. We continue to generate strong cash flows and our balance sheet is robust. We are investing in technology and capabilities that will position us favourably 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.”
The statement from the company further informed that dedicated centres and biologics manufacturing services reported steady growth. The company introduced a protein production platform that reduces development timelines for various biologics, enabling quicker access to medicines for patients. The repurposing of the biologics manufacturing facility acquired from Stelis Biopharma is on schedule, with completion expected in the second half of FY 2025. This will triple Syngene’s biologics manufacturing capacity and add a high-speed, high-volume fill-finish line.
The statement from the company further informed that the Board of Directors approved the appointment of Manja Boerman as an independent Non-Executive Director effective June 4, 2024, subject to shareholder approval at the Annual General Meeting. Manja Boerman, currently CEO of Prothya Biosolutions B.V., has over 20 years of experience in protein, cell, and gene therapy. She has held senior roles at various leading biopharmaceutical companies and is recognised for her expertise in clinical operations, strategic planning, and business development.
Revenue from operations: Rs 790 crores (-2 per cent YoY)
Revenue: Rs 808 crores (-3 per cent YoY)
Reported EBITDA: Rs 188 crores (-20 per cent YoY)
Reported EBITDA margin: 23 per cent
PAT before exceptional item: Rs 55 crores (-42 per cent YoY)
PAT margin: 7 per cent
Reported PAT: Rs 76 crores (-19 per cent YoY)
Reported PAT margin: 9 per cent
