Syngene’s biologics division expands amid Q4 downturn, expects strong revenue growth ahead

Syngene International Limited, a key player in the biotech industry, posted a 9% rise in full-year revenue from operations at Rs 3,489 crore and a 12% increase in profit after tax (PAT) up to Rs 519 Crore. Conversely, fourth-quarter reported revenue dropped 8% YoY to Rs 917 crore, although profit after tax grew 6% YoY to Rs 189 crore.

“Despite the less than anticipated Q4 performance, I am optimistic of the recovery signs seen from a dip in R&D services demand within US biotech, primarily dictated by a challenging funding environment,” said CEO Jonathan Hunt about the results. He further lauded the company’s resilience, particularly in their biologics division, attributing it to their comprehensive operating spectrum and financial backing.

Hunt posited an encouraging outlook for fiscal year 2025 (FY25), predicting revenue growth between high single digits to low double digits, analogous EBITDA margin to FY24, and a single-digit PAT growth. Clearly positive of the sector’s distant future prospects, he affirmed, “We will continue to perform well in the long term.”

“After a strong start to the fiscal year, performance moderated in Q3 and Q4 leading to a slower latter half,” CFO Sibaji Biswas, relayed. Regardless, he emphasized the company’s robust strategy in controlling costs, maintaining EBITDA margin, and generating a strong net cash flow of Rs 1,042 crore solely from operating activities.

Biswas optimistically added that amid a pickup in the ensuing fiscal year, “we will continue to strategically invest in areas that strengthen our position as a leading integrated provider of research, development, and manufacturing services.”

The Board of Directors has also recommended a final dividend of Rs.1.25 per share (a 150% boost compared to last year). The company, Hunt said, plans to further diversify its operations and research capabilities. It has operationalised new Development Services for purifying certain compounds and has completed the acquisition of a biologics manufacturing facility. Furthermore, the company’s AI-driven programs continue to evolve, enabling it to identify effective drug targets for combating diseases and applying the tool beyond life sciences, he said.