Syngene reports full year and fourth quarter results

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Mumbai, April 25, 2024: Syngene International Limited today announced its full-year and fourth quarter results. For the full year ending March 31, 2024, revenue from operations was up 9% to Rs. 3,489 Cr resulting in profit after tax, before exceptional items, up 12% to Rs. 519 Cr. Reported revenue from operations for the fourth quarter declined 8% year-on-year to Rs. 917 crores. Profit after tax for the quarter increased 6% year-on-year to Rs 189 crores.

Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “While the fourth quarter performance came in lower than expected, the underlying driver – reduced demand for research and development services within US biotech stemming from a difficult funding environment – is well understood and already showing positive signs of recovery. Despite the business environment, we delivered growth during the year. This resilience is the result of our broad operating span and the investments made to establish our development and manufacturing divisions with biologics, in particular, delivering a strong performance throughout the year. I’m encouraged by the recent step up in new funding into US biotech and expect this to drive a recovery in demand for research and development services translating into revenue growth in the latter part of the year. Looking ahead, we expect revenue growth in fiscal year 2025 to be in the range of high single digits to low double digits with momentum building up during the year. We expect the EBITDA margin to be similar to the level delivered in fiscal year 2024 and PAT growth in single digits. The long-term indicators for the sector are positive and I am confident that we will continue to perform well in the long term.”

Sibaji Biswas, Chief Financial Officer and Executive Director, Syngene International Limited said, “We had a strong start to the year which moderated in the third and fourth quarters resulting in a slower second half of the fiscal year. We continued to manage costs proactively to deliver consistent operating leverage and maintain EBITDA margin around the expected level. Our net cashflow generated from operating activities for the year was strong at Rs 1,042 Crores, which fully funded the capex and the acquisition of the biologics manufacturing plant. For fiscal year 2024, the Board of Directors has recommended a final dividend of Rs.1.25 per share, an increase of 150% over last year’s core dividend of 50 paise per share, subject to shareholders approval. As demand picks up in the year ahead, we will continue to strategically invest in areas that strengthen our position as a leading integrated provider of research, development and manufacturing services.”

Fourth quarter: Business update

In Development Services, a new capability for purifying and separating chiral compounds and HPAPIs (Highly Potent Active Pharmaceutical Ingredients) was operationalized. HPAPIs are typically used in the treatment of serious diseases such as cancer where precise dosing is crucial. Chiral compounds have two forms which can exhibit different biological effects. While one form present in the drug may have the desired therapeutic effect, the other may be inactive or even harmful. By offering purification and separation in-house, clients will benefit from accessing everything from initial synthesis to final purification in a single, seamless process.

FY24 full year: Business update

In Manufacturing Services, the acquisition of the biologics manufacturing facility from Stelis Biopharma was concluded successfully. The repurposing of the facility remains on schedule with completion of the qualification and facility modifications expected in the second half of 2024. All quality-related digital platforms have been extended to the facility to deliver fully digitized quality operations throughout. Once operational, the facility will offer production of both drug substance and drug product.

The Company continued to invest in its fully integrated therapeutic discovery and development for small molecules and biologics, SynVent, covering a range of therapeutic areas including oncology, gene therapy, central nervous system (CNS) and pain management for use in human and animal health.

The Company’s artificial intelligence-driven programs continued to evolve. The capabilities of Syn.AI™ were expanded to enable it to identify the most effective drug targets for combating disease by enhancing its target identification and validation packages. In addition, in line with Syngene’s commitment to innovation, the tool was applied to projects beyond life sciences for applications in the energy and cosmetic sectors.

New Appointments

Nilanjan Roy: The Board of Directors has approved the appointment of Nilanjan Roy as an independent Non-Executive Director effective April 1, 2024, subject to shareholders approval. Nilanjan Roy is a seasoned finance professional with a 33-year career in international finance. He has served as the Chief Financial Officer at Infosys Limited and Bharti Airtel Limited and held senior positions at Unilever. His expertise spans various traditional finance functions including treasury, mergers & acquisitions, investor relations, taxation, financial accounting and reporting.

Sibaji Biswas: The Company’s Chief Financial Officer, has been elevated to the position of director, designated as Chief Financial Officer and Executive Director, from April 1, 2024, for a five-year term, subject to shareholders approval. Sibaji is a highly experienced finance professional with over 28 years of experience. He has held senior finance positions at Vodafone (India and Europe), Hutchison Essar Limited, and other notable companies. Since joining Syngene in December 2019, he has overseen multiple functions, driving strategy, profitability, and organizational growth.

Dividend:

The Board of Directors has recommended a final dividend of Rs.1.25 per share for fiscal year 2024, an increase of 150% over last year’s core dividend of 50 paise per share. The final dividend is subject to shareholders approval at the Annual General Meeting of the Company.

Disclaimer: Information in this release is for informational purposes only. While we aim for accuracy, we can’t guarantee completeness or suitability for specific purposes. Reliance on this information is at your own risk.