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Syngene International Ltd, which announced its first quarter results, has raised the annual revenue guidance from mid-teens to high teens. For the first quarter ended in June, Syngene’s net profit slipped by 4 per cent to ₹74 crore on a year-on-year (YoY) basis, against ₹77 crore in the same period last year.
PAT on a quarter-on-quarter (QoQ) basis dropped by almost 50 per cent compared to . ₹147 crore in the March quarter
The company recorded an improvement in revenues by 8.2 per cent at ₹644 crore . (₹595 crore). Revenues dipped by 15 per cent compared to last quarter when it was ₹758 crore.
The earnings before interest, taxes, and amortisation (EBITA) for Q1 were up 6 per cent at ₹188 crore (₹177 crore).
Rupee-dollar exchange rate
“Revenue guidance for the year has been raised from mid-teens to high teens to account for two factors: a significant change in the rupee/dollar exchange rate which helps the top line because most of our client contracts are dollar-denominated. Second, the recent agreement with Zoetis, which will start to benefit revenue in the second half of the year and build gradually in future years,” said Sibaji Biswas, Chief Financial Officer, Syngene International Ltd.
The first quarter results were against a strong quarter last year due to sales of Covid treatment drug, Remdesivir. Excluding the impact of Remdesivir, the underlying revenue from operations growth in the quarter was around 30 per cent (YoY), the release said.
Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “The first quarter results were in line with our expectations and reflect strong underlying performance across all our business divisions. The decline in profit in the quarter compared to the same period last year was as expected given the strong sales of Remdesivir last year when India was in the midst of the second wave of the pandemic. No sales of Remdesivir were recorded in the first quarter this year.”
Syngene International Limited is an integrated research, development and manufacturing organisation providing scientific services – from early discovery to commercial supply. They offer services across a range of sectors including pharmaceutical, nutrition, animal health, consumer goods and speciality chemical companies.
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