On October 17, 2023: Syngene International Limited (BSE, NSE: SYNGENE) announced its Q2 2023-24 financial results. The company has reported positive results with a healthy second quarter in terms of an uptick in revenue from operations as well as an acceleration in Profit After Tax (PAT).
Result Highlights
Some of the key positive results of Syngene in Q2 are featured below:
- The company’s second-quarter results are robust with an upswing in Operational Revenue at 18.5%.
- For Q2, PAT (Profit After Tax but before exceptional items) is up by 20%.
- Strong results are generated primarily from the company’s services of Development and Manufacturing, especially as a result of strategic and sound partnership deals.
- Dedicated Services handling research and development also added to the company’s positive growth trends in Q2.
- Sector fundamentals for the long term remain healthy.
- In the first half of the year, up to Q2, which ended September 2023, Syngene has witnessed success in manufacturing and development areas predominantly.
Additional Read: Q2 Results Dashboard
Commentary by the Management
Jonathan Hunt, the CEO and MD of Syngene, remarked on the results of Q2, emphasising the following points:
- Q2 results and results for the first half of the year (2023-24) are promising.
- Particularly, positive strides have been made in the Development and Manufacturing segments of the company.
- With the new addition of a non-GMP capability centre, Syngene is well-positioned to scale up and meet the market demands of cost-efficiency, agility, and early-stage development.
- Promising progress has been made on long-term biologics with strategic collaborations and partnerships.
- To boost the growth of biologics operations, a digitally quality-controlled and state-of-the-art laboratory has been commissioned in Q2.
- The US-centric biotech area showed a somewhat slow YoY growth owing to adjustment to a fresh funding system, but international demand has remained quite robust.
The CFO of Syngene, Sibaji Biswas, added the following:
- Q2 shows good prospects for the company in general.
- The company hopes for more positive results in the coming months with investment in new science and technology, digitisation, and growing capacity for building growth.
- The company aims at future growth by balancing expenses so that margins are efficiently met.
Additional Read: Syngene International Share Price
Striking Deals
In Q2, Syngene witnessed some collaborative efforts with a view to the positive growth of the company. Some of these efforts culminated in deals struck, while others are ongoing measures to facilitate company progress:
- With regard to its focus on long-term biologics, the company continues to make positive progress in its collaboration with Zoetis, a global leader in animal healthcare services.
- The company has progressed in the process of acquiring a multiple-modal facility from a top pure biologics services company, Stelis Biopharma. Although this was announced in Q1 2023-24, some progress has been made in Q2 2023-24.
- The first half of Syngene’s year (FY 2023-24) has culminated in the acquisition of 17 acres of land to extend its research campus and achieve regulatory authorisation from the US FDA for a Mangalore-based commercial manufacturing unit.
Syngene International Limited Financial Results Q2 FY 2023-24
The table below shows particulars of the key metrics leading to Syngene’s financial results (with QoQ Data Comparison and YoY information in %) for Q2 FY 2023-24:
| Parameters | Q2 FY 2023-24 | Q2 FY 2022-23 | YoY Change % |
| Revenue from Operations | ₹910 Cr | ₹768 Cr | 18.5% |
| Revenue | ₹932 Cr | ₹784 Cr | 19% |
| PAT before exceptional item | ₹122 Cr | ₹102 Cr | 20% |
| Reported EBITDA | ₹276 Cr | ₹232 Cr | 19% |
About Syngene International Limited
Incorporated in 1993, Syngene is an organisation involved in manufacturing and contract research development. As a result, the company provides development, integration discovery, and manufacturing services to biotechnology, pharmaceutical, consumer goods, animal healthcare, and agrochemical firms. The company boasts a client base comprising experts in specific fields, ranging from international multinational companies to startups. Some clients are also educational institutions and nonprofits.
Syngene has a business model that can only be described as unique and a talent pool of some 6000+ scientists that imbibe expertise in new therapeutic modalities. Additionally, the company, armed with experienced management, offers clients innovation that works to benefit human as well as animal health. Syngene works as a strategic collaborator with clients, as an extension of their own scientific teams, aiming for a quicker and more flexible way to scale up approaches to therapy and access to patients.
Source:
https://www.syngeneintl.com/investors/financial-information/
https://www.bseindia.com/xml-data/corpfiling/AttachLive/56c919eb-cfac-4266-b9ab-457cf6254877.pdf
