Syngene International Share Price Down After FY25 Revenue Guidance Lowered

Syngene International Ltd.'s share price tanked 4% during early trade on Friday, after the company lowered its full-year revenue guidance due to unexpected delays in demand recovery.

Initially anticipated in the second half of the year, the recovery was postponed by eight to 12 weeks, prompting the company to project single-digit revenue growth, with flat profit for the year. However, the Ebitda guidance remains steady, reflecting resilience in the company's operational strategy.

The company's consolidated net profit rose 18% in the third quarter of the current financial year, missing analysts' estimates. The results were released after market hours on Thursday.

Syngene International reported a net profit of Rs 131 crore for the quarter ended Dec. 31, up from Rs 112 crore in the same period last year. However, the profit fell short of Bloomberg analysts' estimates of Rs 144 crore.

The company, which had initially projected high-single to low-double-digit growth for the year, revised its revenue expectations due to further delays in the US biotech funding environment during the third quarter, impacting market stabilisation.

Despite the challenges, Syngene remains focused on its long-term strategy, with significant investments planned to expand capacity and capabilities, capitalising on the 'China Plus One' trend. The completion of Unit 3, expected in April, is anticipated to be a key driver of future growth.