Syngene International, the Contract Research Outsourcing (CRO) arm of Biocon, has posted strong first half results, on the back of growth across all its service lines. It is optimistic about similar growth rates for the remaining half of the year.
The company, which got listed recently, reported net profit of ₹96 crore in the first half of 2016 fiscal, a 29 per cent increase, when compared to the first half of last financial year. Further, revenues came in at ₹498 crore, a 28 per cent increase when compared to the same period last year. Peter Baines, Executive Director and Chief Executive Officer, Syngene International, in a call said that growth in its dedicated centres, discovery and development service platforms resulted in the strong performance.
The results were announced after market hours and Syngene shares closed at ₹359, almost four per cent down.
The company also reported profit after tax margins on 19 per cent, in line with its stated target of achieving margins in the 'high teens'. Going ahead, the company is bullish about its prospects. “We have a strong order book and a good pipeline to achieve similar growth in the remaining two quarters,” Baines told
Syngene does projects related to outsourced research requirements of global pharmaceutical, biotech companies, provides integrated services to develop new drugs and other related services, and counts customers such as Bristol–Myers Squibb, Abbott and Baxter as its clients.
Baines added that Syngene plans to make further investments towards capacity additions and capability enhancements in both the discovery and development space.