Conference Call with Syngene International Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Pharmaceuticals company Syngene International announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Quarterly revenue from operations crossed Rs 1,000 crore mark for the first time. Reported revenue from operations was up 11% YoY to Rs 1,018 crore and up 8% sequentially from the prior quarter. Operating EBITDA was up by 8% YoY with operating EBITDA Margin at 34%. Reported profit after tax was Rs 183 crore. FY25 Financial Highlights: Revenue from operations was up 4% to Rs 3,642 crore. Operating EBITDA was up by 3% YoY with operating EBITDA margin at 29%. Reported profit after tax, before exceptional items, was down 8% to Rs 475 crore. Adjusted for one offs and exceptional items, the profit after tax for the full year remained broadly flat with a 1% YoY growth. Peter Bains, Managing Director and CEO, Syngene International, said: “Syngene reported revenue growth of 11% YoY, and 8% sequentially crossing the Rs 1,000 crore in a quarter threshold for the first time. At the EBITDA level growth was 9% YoY reflecting good underlying fundamentals. The highlight of the quarter was the acquisition of a state-of-the-art 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. Our biologics CDMO business witnessed robust growth supported by commercial manufacturing alongside new development projects. High conversion of pilot projects into full programs in discovery services supported the growth in our research division. The full year results, led by reported revenue growth of 4%, are in line with our January guidance, reflecting a resilient performance in a challenging year. After a muted first half, driven by a sectoral downturn in US biotech funding, we are encouraged to see a return to growth in the second half of the year. Looking at the year ahead, while the wider global market dynamics remain uncertain, we expect the business momentum to continue with pipeline build in both small and large molecules, supported by new pilot programs and conversion of existing pilots in discovery services. On an underlying basis for fiscal year 2026, we expect revenue growth in the early teens reflecting a broad-based growth across research, development and manufacturing services. Adjusted for inventory balancing in large molecule commercial manufacturing at client level, the reported revenue growth is likely to be at mid-single digit. The mid-term indicators for the CRDMO sector remain positive and I am confident that Syngene’s diverse and well-balanced portfolio across research, development and manufacturing services positions us well to navigate the dynamics and continue our growth story.” Deepak Jain, Chief Financial Officer, Syngene International, said: “Q4 growth was broad based across research, development and manufacturing services, underpinning full year growth of 4% on a reported basis and 2% in constant currency. Operating EBITDA growth came in at 3% maintaining a margin of 29% reflecting a sharp focus on operational efficiencies and cost optimization programs. We continued to make strategic investments to enhance our capabilities and capacities across business while maintaining a strong balance sheet and an improved net cash position. For FY25, the Board of Directors has recommended a final dividend of Rs 1.25 per share, subject to shareholders approval. Looking ahead into the next financial year, we expect the momentum to continue, with reported revenue growth at the mid-single digit level. As we bring the new biologics manufacturing facilities into operations, the additional operating costs and depreciation will impact margins. With this, we expect EBITDA margin to moderate from current levels to the mid-twenties and YoY decline in profit after tax.” Result PDF