Syngene International's net profit rises 53% to Rs 102 crore in Q2

Syngene International on Wednesday reported a 53 per cent rise in consolidated net profit at Rs 102 crore in the second quarter ended September 2022 on the back of higher revenue.

The company, which is an integrated research, development and manufacturing services firm, had posted a consolidated net profit of Rs 66.7 crore in the same period last fiscal, it said in a regulatory filing.

Consolidated revenue from operations during the period under review stood at Rs 768.1 crore as against Rs 610.2 crore in the year-ago quarter, it added.

"The quarter saw positive performances across all divisions. Our research divisions -- discovery services, including Synvent, our integrated drug discovery platform, and the dedicated centres showed sustained growth. Discovery chemistry in particular saw buoyant customer demand," Syngene International Ltd Managing Director and CEO Jonathan Hunt said.

Growth in development services was led by existing clients renewing contracts and setting up collaborations on additional projects, he said, adding, the highlight in manufacturing services was the successful completion of the process performance qualification batches at a commercial scale for Zoetis, the global animal health firm.

Hunt further said the company is on track for the next important regulatory audits which will "pave the way for the commercial manufacturing of the drug substance for Librela, a Zoetis product, from the fourth quarter of FY23".

On the outlook, he said, "With a strong first half of the year behind us, we are on track to achieve our guidance, including the upgraded revenue growth target announced in July."

In July, Syngene had raised its revenue guidance for the fiscal to "mid-teens to high teens" on the back of a significant change in the Rupee/US dollar exchange rate as most of its client contracts are dollar denominated and the agreement with Zoetis.