Syngene International Ltd on October 17 reported a 14.22 per cent increase in consolidated net profit at Rs 116.5 crore in the September quarter. The company had posted a consolidated net profit of Rs 102 crore in the year-ago period, Syngene International said in a regulatory filing.
Consolidated revenue from operations were at Rs 910.1 crore as compared to Rs 768.1 crore in the year-ago period, it added. The company's total expenses rose to Rs 773.6 crore in the second quarter of the current fiscal as against Rs 653.5 crore a year ago.
Syngene International Managing Director and CEO Jonathan Hunt said the company posted strong results for the second quarter and first half of the ongoing financial year, particularly in its development and manufacturing services. "In development services, we also added a new non-GMP capability centre to meet market demand for agile, cost-efficient, early phase development and scale-up services," he said.
"In manufacturing, we made good progress on our long-term biologics partnership with Zoetis, as well as commissioning a state-of-the-art, digitally enabled quality control laboratory to support our growing biologics operations," Hunt said. The acquisition of a multi-modal facility from Stelis Biopharma Ltd, announced last quarter, is progressing, he added.
On the outlook, Hunt said, "Long-term sector fundamentals remain strong and we expect continued growth but at a lower level in the second half of the year… the short-term slowing in the US biotech segment is reflected in our latest outlook."
Meanwhile, the company also warned against the the temporary
slowdown in US biotech funding which might chart out a slower growth for Syngene in the second half of the current fiscal. Re-aligning with the changing industry trend, the company has adjusted its revenue guidance to now deliver growth in mid-teens in a constant currency basis, as against its previous target of high-teen growth.
The clampdown of growth guidance did not sit well with investors as the stock slumped over 5 percent in early trade on October 18, after the result announcement. At 09.49 am, shares of Syngene were trading 4.3 percent lower at Rs 745.85 on the NSE.
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