Syngene International Posts Rs 32.2-Crore Profit in Q2, Rebounds From Q1 Loss

New Delhi: Contract research and manufacturing services firm Syngene International on Tuesday posted a sharp 108 per cent decline in year-on-year net profit to Rs 32.2 crore in the September quarter, but recovered from its losses sequentially.

The company had posted a net profit of Rs 67.1 crore in the year-ago period, it said in a regulatory filing on Tuesday evening.

In the preceding quarter, however, it had slipped into the red, reporting a loss of Rs 9 crore.

Revenue from operations during the second quarter was at Rs 832.7 crore as compared to Rs 910.6 crore a year earlier, as per the filing.

Total expenses during the period under review were also lower at Rs 807 crore as against Rs 840.8 crore, the company said.

“Our second quarter saw sequential revenue growth of 13 per cent, supported by positive traction in our CDMO business. Operating EBITDA margin improved by 6 percentage points, while PAT stood at Rs 32 crore, compared with a loss of Rs 9 crore in the preceding quarter,” Managing Director and CEO Siddharth Mittal said.

“On a year-on-year basis, revenue declined 9 per cent, while operating EBITDA margin stood at 18 per cent, in line with expectations, primarily reflecting lower Zoetis revenues and forex hedge losses. A key highlight of the quarter was the signing of our first manufacturing agreement for the Bayview biologics facility in the US, strengthening our global manufacturing capabilities,” Mittal said.

Our focus remains on enhancing our integrated drug discovery offering, sharpening our commercial execution, improving asset utilisation and cost competitiveness, and translating our scientific capabilities into sustainable business growth, he added.

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