Covid impact: Syngene profits down 19.44 per cent in Q1

Syngene International, a Bengaluru-based, integrated research, development and manufacturing services company, has said the temporary suspension of operations during the Covid-induced nationwide lockdown has impacted its performance.

The company posted 19.44 per cent lower profits at ₹580 crore for the first quarter (Q1) of FY 2020-21 on a consolidated basis as against ₹720 crore posted last year.

Income is also lower by 1.01 per cent at ₹4,369 crore as against ₹4,414 crore in the same period last year. EPS for the quarter stood at ₹1.47 (₹1.82).

Commenting on the performance, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene, , said, “The company’s Q1 was driven by solid performances in discovery services and the dedicated centres. But in line with our guidance, Q1 revenue was flat at ₹437 crore compared to the same quarter last year due to the temporary suspension of operations during the nationwide lockdown. However, the implementation of protective measures allowed all divisions to restart gradually and operate at close to normal levels for the last six weeks of the quarter.”

Covid-related research

On the business front, the company said it is supplying reagents for use in diagnostic kits for Covid-19 testing and has signed a voluntary licensing agreement with Gilead for manufacture and supply of Remdesivir in India and other markets.

The company continues to escalate engagement in various Covid-19 research and diagnostic projects. Its RT-PCR testing facility is supporting hospitals across Bengaluru and has conducted more than 30,000 Covid-19 tests free of charge. It has also indigenously developed an ELISA testing kit that has been outsourced to HiMedia for manufacturing and distribution across the country.