Contract manufacturing services firm, Syngene International, has announced its financial results for the quarter ended June 2023, showcasing a robust performance. The company’s consolidated net profit witnessed a significant increase of 26% YoY, reaching Rs 93 crore.
Revenue from operations also experienced impressive growth, rising by 25.4% YoY to Rs 808.1 crore, compared to Rs 644.5 crore in the corresponding period of the previous fiscal year.
Additionally, the company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) registered a YoY increase of 22.6%, reaching Rs 212 crore in Q1 FY 2024, compared to Rs 173 crore in the same period last year. Despite a slight decline in the EBITDA margin from 26.8% to 26.2% YoY, the overall performance remains commendable.
During the quarter, Syngene International achieved three significant milestones. Firstly, it completed the previously announced acquisition of a biologics manufacturing facility in Bangalore from Stelis Biopharma Ltd. Secondly, the company received regulatory approval for the commercial manufacturing plant in Mangalore from the US Food and Drug Administration. Lastly, it acquired additional land in Hyderabad to support further growth.
Syngene last 9 quarters Comparision: Summary table
| Quarter | Jun 2021 |
Sep 2021 |
Dec 2021 |
Mar 2022 |
Jun 2022 |
Sep 2022 |
Dec 2022 |
Mar 2023 |
Jun 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Sales (in Crore INR) |
594 | 610 | 641 | 758 | 644 | 768 | 786 | 994 | 808 |
| Expenses (in Crore INR) |
430 | 433 | 438 | 508 | 472 | 552 | 555 | 680 | 596 |
| Operating Profit (in Crore INR) |
165 | 177 | 203 | 250 | 173 | 216 | 231 | 314 | 212 |
| OPM % | 28% | 29% | 32% | 33% | 27% | 28% | 29% | 32% | 26% |
| Other Income (in Crore INR) |
12 | -18 | 13 | 15 | 16 | 15 | 17 | 23 | 24 |
| Interest (in Crore INR) |
8 | 1 | 9 | 6 | 9 | 12 | 14 | 10 | 10 |
| Depreciation (in Crore INR) |
75 | 76 | 78 | 80 | 86 | 90 | 95 | 96 | 102 |
| Profit before tax (in Crore INR) |
95 | 82 | 128 | 179 | 93 | 130 | 140 | 231 | 123 |
| Tax % | 18% | 19% | 19% | 17% | 20% | 22% | 22% | 23% | 24% |
| Net Profit (in Crore INR) |
77 | 67 | 104 | 148 | 74 | 102 | 110 | 179 | 93 |
| EPS in Rs | 1.93 | 1.66 | 2.59 | 3.69 | 1.84 | 2.54 | 2.73 | 4.45 | 2.32 |
Jonathan Hunt, MD, and CEO of Syngene International, expressed satisfaction with the strong first-quarter performance, attributing it to the success of Development and Manufacturing Services, backed by the company’s research divisions, Discovery Services, and the Dedicated Centers.
Sibaji Biswas, the Chief Financial Officer of Syngene International, reported that the financial performance aligns with the revenue growth guidance for the year on a constant currency basis. Despite making investments in expanding their biologics manufacturing and discovery services portfolios, the company remains committed to maintaining a robust balance sheet and a low debt profile.
Looking ahead, the company’s growth trajectory appears promising, as evidenced by its plans to acquire an additional biologics manufacturing site close to the existing Bangalore campus. With a capacity of 20,000 liters and scope for further expansion, this strategic move strengthens Syngene’s position as a leading biologics contract development and manufacturing service provider.
In my opinion, Syngene International’s Q1 FY 2024 results reflect a positive and prosperous start to the financial year, underlining its position as a key player in the biologics manufacturing and research industry.
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