Syngene International Q4 Results: Profit Misses Estimates
Revenue rose 11% to Rs 1,018 crore in the quarter ended March.
Syngene International Ltd.'s consolidated net profit fell 2.8% in the fourth quarter of the last financial year, missing analysts' estimates.
The contract research and manufacturing services firm posted a profit of Rs 183 crore in the quarter ended March in comparison to Rs 189 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a profit of Rs 192.9 crore.
Syngene Q4 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 11% to Rs 1,018 crore versus Rs 917 crore (Bloomberg estimate: Rs 1,048.8 crore).
Ebitda up 6.5% to Rs 348 crore versus Rs 327 crore (Estimate: Rs 364.8 crore).
Margin at 34.2% versus 35.7% (Estimate: 34.8 %).
Net profit down 2.8% to Rs 183 crore versus Rs 189 crore (Estimate: Rs 192.9 crore).
The profit faced pressure from a significantly higher tax expense — 23.7% of the net profit. In the year-ago period, the tax outgo was lower at 10% due to a one-time reversal of a prior income tax provision, stemming from favourable tax assessment orders.
The highlight of the quarter was the acquisition of a biologics manufacturing facility in the US, strengthening Syngene's position in the fast-growing biologics CDMO sector and providing a strategic foothold in the US market, according to Peter Bains, chief executive officer of Syngene.
"Our biologics CDMO business witnessed robust growth, supported by commercial manufacturing alongside new development projects. High conversion of pilot projects into full programmes in discovery services supported the growth in our research division," Bains added.
What To Expect In FY26
In the current fiscal, the company anticipates underlying revenue growth in the early teens, driven by broad-based expansion across its research, development and manufacturing services.
However, after adjusting for inventory balancing in large molecule commercial manufacturing at the client level, the reported revenue growth is likely to be in the mid-single digits.
The mid-term indicators for the CRDMO sector remain positive. As new biologics manufacturing facilities become operational, the company anticipates that additional operating costs and depreciation would impact margins.
Syngene expects the Ebitda margin to moderate from the current levels to the mid-twenties and expects a year-on-year decline in profit.
Shares of Syngene closed 1.99% higher at Rs 750.05 apiece on the BSE, compared to a 0.65% rise in the benchmark Sensex.
