Syngene International -
Q4 FY 24 results and concall highlights -
Revenues - 917 vs 994 cr
EBITDA - 317 vs 314 cr ( margins @ 35 vs 32 pc )
PAT - 189 vs 179 cr ( due lower tax outgo on account of tax reversal from previous FY )
For full FY 24 -
Revenues - 3490 vs 3193 cr
EBITDA - 1014 vs 942 cr
PAT - 510 vs 464 cr
Fourth Qtr performance was lower than expected - driven by reduced demand for research and development services within US biotech stemming from a weak funding environment. This - however is showing signs of recovery. According to Jeffries, $ 23 billion fresh funding went into US’s biotech sector in last 12 weeks
Cash flow from operations was very strong @ 1042 cr for FY 24. This cash flow fully funded the capex and acquisition of biologics manufacturing plant of Stellis Biopharma
Increased wind / green energy usage is helping the company save a lot of money on power and fuel costs
Capex for FY 24 stood at Rs 455 cr. Plus the company acquired Stellis Bio’s plant for 700 cr
Expect a high single digit to low double digit topline growth for FY 25. Most of the growth is likely to be back ended ie in H2 FY 25. This growth guidance includes ramp up in Mangalore API facility. However, the Stellis’s manufacturing facility ramp up is not expected in FY 25
Capex for FY 25 expected to be around Rs 500 cr - 60 pc towards discovery services and 40 pc towards CDMO services
J Hunt ( CEO ) said - he can literally sense that big Pharma is diversifying away from China - both for discovery and CDMO services. Moving away development and manufacturing from one geography to another is far more difficult vs moving away discovery services
Company is supplying the drug - Liberla to Zoetis. Its a 10 yr contract for supply @ $ 50 million / yr
Seeing increasing visits / enquiries from global Pharma majors towards Indian CDMO / Drug discovery companies over last 12 months - in a move away from China
Disc: holding since 2022, biased, not SEBI registered
Subscribe To Our Free Newsletter |