Syngene International scales 52-week high on 21% rise in Q4 net profit

Shares of Syngene International scaled a 52-week high in early trade on April 27 after the company recorded a 21 percent rise in its fourth quarter net profit.

The drugmaker’s net profit for the January-March period jumped 21 percent on-year to Rs 179 crore, aided by a strong topline growth of 31 percent to Rs 994 crore from Rs 758 crore a year back.

Brokerage firm ICICIdirect believes the rise in topline was driven by discovery services and dedicated centres, which showed sustained growth. Development services also grew substantially, predominantly by further orders from existing clients, the firm said.

“All business divisions delivered growth through the year triggering investment in additional laboratory capacity and new facilities at our campuses in Bangalore and Hyderabad,” Jonathan Hunt, Managing Director and Chief Executive Officer of Syngene International, stated in an exchange filing.

Hunt also highlighted that the manufacturing services segment had a particularly strong year, led by the commercial-scale biologics manufacturing business which had a busy fourth quarter supporting the company’s partnership with Zoetis, following successful regulatory inspections by the US, European and UK regulatory authorities.

At 9.47am, shares of Syngene International were trading 3.62 percent higher at Rs 647 on the National Stock Exchange. The stock also hit a 52-week high of Rs 660 intraday.

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Trading volumes also remained high as 14 lakh shares of the drugmaker changed hands on the exchanges, as against the one-month daily traded average of four lakh shares.

For FY23, the company’s revenue surged 23 percent on-year to Rs 3,193 crore, while EBIDTA recorded an 18 percent growth to Rs 1,005 crore, the highest in the last five years.

ICICIdirect was also positive on the company as Syngene continued to deliver stand-out numbers driven by all core segments, even in a scenario where most of the CRAMS (Contract Research & Manufacturing Services) players are witnessing a slowdown or business realignment.

Syngene also highlighted that its biologics manufacturing partnership with Zoetis, signed in the first quarter is expected to be worth $ 500 million over the next 10 years.

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