Syngene International Q2 Results: Profit Falls But Beats Estimates
Revenue declined 2.1% to Rs 891 crore in the September quarter.
(Image Source: Syngene International/Facebook)
Syngene International Ltd.'s consolidated net profit declined 9.4% in the second quarter of the current financial year but beat analysts' estimates.
The contract research and manufacturing services firm posted a profit of Rs 106 crore in the quarter ended September in comparison to Rs 117 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a net profit of Rs 99 crore.
Syngene Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue down 2.1% to Rs 891 crore versus Rs 910 crore (Bloomberg Estimate: Rs 883 crore).
Ebitda down 3.9% to Rs 244 crore versus Rs 254 crore (Estimate: Rs 234 crore).
Margin narrows to 27.4% versus 27.9% (Estimate: 26.5%).
Net profit down 9.4% to Rs 106 crore versus Rs 117 crore (Estimate: Rs 99 crore)
"Performance in the second quarter and first half of the (financial) year was broadly flat, in line with our expectations," Chief Executive Officer Jonathan Hunt said. "I am pleased with the early positive signs of recovery in discovery services, largely driven by collaborations on pilot projects, with large and mid-sized biopharma clients looking for alternatives to China to rebalance their supply chains."
With a strong third quarter already underway, we expect to see a positive change in revenue trajectory in the third quarter and remain on track to deliver within our guidance range for the full year.CEO Jonathan Hunt
Operating Highlights
Syngene continued to receive healthy interests from clients, including increased requests for proposals, on-site visits and audits.
Development and manufacturing services was led by sustained delivery in biologics manufacturing and higher number of process development projects compared to last year in small molecules.
In anticipation of increased demand in the long term, the company continues to add capacity and capabilities in discovery services at its Bengaluru and Hyderabad campuses in areas, such as antibody drug conjugates, peptides and oligonucleotides.
Syngene progressed on the repurposing of the biologics manufacturing facility (Unit III) acquired in December last year. The facility remains on track to commence operations in the second half.
The company is expecting high-single digit to low double-digit growth on a constant currency basis for the upcoming fiscal year.
Shares of Syngene closed 0.13% lower at Rs 837.85 apiece on the BSE, compared to a 0.17% decline in the benchmark Sensex.
