 "Syngene International Q2 results: PAT down by 8.93%, revenue drops by 2%")
Biocon’s arm Syngene International reported an 8.93 per cent year-on-year (Y-o-Y) decline in profit after tax (PAT) for the second quarter of FY25. The company’s revenue from operations also dropped by 2 per cent Y-o-Y. Consolidated PAT in Q2 FY25 stood at Rs 106 crore, while revenue from operations came in at Rs 891 crore.
On a sequential basis, revenue grew by 12.83 per cent, and PAT increased by 40.19 per cent. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell by 5 per cent Y-o-Y.
This quarter, Discovery Services, the division responsible for early-stage research in drug discovery and development, showed signs of recovery, primarily driven by pilot projects from large and mid-sized biopharma clients seeking alternatives to China, according to the firm.
Syngene plans to expand its capacity and capabilities at its Bangalore and Hyderabad campuses to meet anticipated long-term demand, with a focus on areas such as antibody-drug conjugates, peptides, and oligonucleotides.
Commenting on the results, Jonathan Hunt, managing director and chief executive officer of Syngene International, said, “Performance in the second quarter and the first half of the year was broadly flat, in line with our expectations. We have proven capabilities in biologics, and additional manufacturing capacity is coming online in the second half of the year. With a strong third quarter already underway, we expect a positive change in revenue trajectory and remain on track to deliver within our guidance range for the full year.”
Syngene also reported progress in repurposing Unit III, a biologics facility acquired in December, which is set to begin operations in the second half of the year. The plant features customizable, plug-and-play platforms with advanced bioreactors and vial filling lines.
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“With recent investments in the research and contract development and manufacturing organisation (CDMO) businesses, we are well-positioned to leverage opportunities for medium to long-term growth. The company maintains a robust balance sheet with a strong net cash position, enabling us to invest in strategic areas including digitisation, commercial capabilities, and new technology to support growth,” said Sibaji Biswas, executive director and chief financial officer of Syngene International.
On the leadership front, Syngene has appointed Deepak Jain as chief financial officer, effective December 1, succeeding Sibaji Biswas, who has resigned from the position.
Syngene announced its results after market hours on Wednesday. The company’s shares closed at Rs 837.85 apiece, down 0.13 per cent on the BSE.