In This Article:
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Revenue from Operations: INR891 crore, down 2% year on year, 13% sequential growth.
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Operating EBITDA: INR245 crore, down 4% year on year.
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Profit After Tax (PAT): INR106 crore, down 9% year on year after exceptional items.
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Operating EBITDA Margin: 27.5% for the quarter.
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Raw Material Cost: Decreased by 11% year on year.
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Staff Cost: Increased by 12% year on year.
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Other Direct Costs: Decreased by 12% year on year.
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Other Operating Costs: Increased by 16% year on year.
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Effective Tax Rate: 22.7% for the quarter.
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Capital Expenditure (CapEx): $12 million for the quarter.
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Cash Balance: INR1,000 crore as of September 2024.
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Net Cash: INR865 crore as of September 2024.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Syngene International Ltd (BOM:539268) reported a sequential revenue growth of 13% in the second quarter, indicating positive momentum.
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The company is seeing increased interest from large and medium-sized BioPharma clients, particularly in biologics and small molecule process development projects.
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Syngene International Ltd (BOM:539268) successfully concluded around 60 audits in the first six months, a 35% increase year over year, reflecting strong client engagement.
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The company is investing in expanding its capabilities in biologics, with new manufacturing capacity expected to come online in the second half of the year.
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Syngene International Ltd (BOM:539268) is focusing on dual sourcing and supply chain resilience, offering clients alternatives to China, which is gaining traction with about a third of clients opting for this option.
Negative Points
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Revenue from operations for the quarter was down 2% year on year, and 3% in constant currency terms.
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Operating EBITDA decreased by 4% to INR245 crore, and profit after tax was down 9% year on year.
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The company experienced a decline in raw material costs by 11% due to a shift in revenue mix, but staff costs increased by 12% year on year.
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Other operating costs increased by 16% year on year due to maintenance and expansion of facilities.
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The company expects revenue growth for the year to be at the lower half of its guidance range, indicating potential challenges in achieving higher growth targets.
Q & A Highlights
Q: Can you clarify if the positive signs of recovery in the discovery services business imply growth on a year-over-year basis or just sequential recovery? A: The broader message is that the shape of the year is turning out as predicted, with a relatively flat first half but growth on a full-year basis. We expect healthy growth in discovery services both sequentially and year-over-year. The second half should look good, indicating a rebound and recovery in growth.