Syngene International Reports 11% Revenue Growth in Q1, Reaffirms Annual Guidance
By ScanX News Team
Syngene International Limited reported an 11% year-on-year increase in revenue from operations, reaching Rs. 875 crore in Q1. EBITDA grew by 19% with a margin of 25%, while PAT before exceptional items rose by 59%. Growth was driven by Research Services business and progress in Biologics manufacturing. The company successfully completed USFDA inspections, expanded its peptide capabilities, and was recognized for sustainability. Management reaffirmed annual guidance despite economic uncertainties.
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Syngene International Limited , a leading contract research and manufacturing services company, has reported a strong start to the financial year, with revenue from operations growing by 11% year-on-year to Rs. 875 crore in the first quarter.
Financial Highlights
| Metric | Q1 Current Year | Q1 Previous Year | Change |
|---|---|---|---|
| Revenue from operations | Rs. 875.00 crore | Rs. 790.00 crore | +11% |
| Reported EBITDA | Rs. 224.00 crore | - | +19% |
| EBITDA margin | 25.00% | 23.00% | +2% |
| Reported PAT before exceptional items | Rs. 87.00 crore | - | +59% |
Performance Drivers
The company's growth was primarily driven by continued conversion of pilot programs into longer-term contracts within its Research Services business. Syngene also made progress in its Biologics manufacturing division, with the commencement of operations at the Unit III facility in Bengaluru and advancing preparations for the Bayview facility in the U.S.
Management Commentary
Peter Bains, Managing Director and CEO of Syngene International Limited, commented on the results, stating, "We are pleased with the growth performance in the first quarter, which is aligned with our expectations." He added, "While we remain mindful of ongoing macroeconomic factors, we maintain a confident outlook."
Deepak Jain, Chief Financial Officer, highlighted the company's focus on cost optimization, which contributed to the improved EBITDA margins. He noted, "We continue to maintain a robust balance sheet enabling us to invest in technology and capabilities to strengthen our customer offerings."
Key Business Highlights
- Successful completion of a USFDA Good Clinical Practices (GCP) inspection of its Human Pharmacology Unit with no observations.
- Received an Establishment Inspection Report (EIR) with a favorable Voluntary Action Indicated (VAI) outcome for the Biologics facility at Biocon Park.
- Inaugurated a new, state-of-the-art, dedicated peptide laboratory, expanding its capabilities in the fast-growing peptide interventional modality.
- Recognized by TIME magazine and Statista as one of the World's Most Sustainable Companies, ranking #1 in India among companies in the pharma and biotech sectors.
Annual Guidance Reaffirmed
Despite the uncertain economic environment, Syngene's Co MD stated that the company remains on track to deliver results in line with its annual guidance. The management emphasized the importance of maintaining awareness of current economic conditions while keeping a positive outlook.
Looking Ahead
As Syngene continues to strengthen its scientific platform capabilities and expand its global footprint, the company appears well-positioned to capitalize on opportunities in the contract research and manufacturing services sector. However, investors should remain cognizant of the ongoing macroeconomic challenges that could impact the industry.
The company will host an investor call where senior management will discuss the company's performance and answer questions from participants.
Note: All financial figures are in Indian Rupees (INR).
Historical Stock Returns for Syngene International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.69% | +3.63% | +4.56% | -11.02% | -13.43% | +49.38% |
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