Syngene Intl records PAT of Rs 189 crore in Q4; EBITDA margin at 36%

Syngene International has reported 5.5% rise in net profit to Rs 188.6 crore despite a 7.8% fall in revenue to Rs 916.9 crore in Q4 FY24 over Q4 FY23.

Material costs declined by 30.9% YoY to Rs 202.8 crore in the fourth quarter due to reversal of inventory provisions of Rs 20.3 crore that were created in prior quarters of FY24. This relates to reassessment of inventory provisioning classified as a change in accounting estimate.

For Q4 FY24, staff costs added up to Rs 250.2 crore (down 1% YoY), other direct costs aggregated to Rs 24.6 crore (down 10.1% YoY) and other expenses amounted to Rs 112.4 crore (up 10% YoY).

EBITDA fell by 1.2% to Rs 333 crore in Q4 FY24 from Rs 336.9 crore in Q4 FY23. EBITDA margin was 36% in Q4 FY24 as against 33% in Q4 FY23.

Profit before tax in Q4 FY24 stood at Rs 209 crore, down by 9.5% from Rs 230.9 crore in Q4 FY23.

For FY24, Syngene recorded net profit and revenues of Rs 510 crore (up 9.8% YoY) and 3,488.6 crore (up 9.3% YoY), respectively.

Jonathan Hunt, managing director and chief executive officer, Syngene International, 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.

Im 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.

Syngene International is an integrated research, development, and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors.

The scrip shed 0.33% to currently trade at Rs 691.90 on the BSE.

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