Syngene International, the listed contract research and manufacturing services arm of Biocon, reported a net profit of Rs 93.4 crore in the June quarter of the current fiscal (Q1FY24). This is higher by 26.4 percent when compared with Rs 74 crore in the last-year period.

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The first quarter revenue from operations rose 25.4 percent year-on-year (YoY) to Rs 808.1 crore, compared to Rs 644.5 crore in the corresponding period of last fiscal.

The earnings before interest, tax, depreciation and ammortisation (EBITDA) rose 22.6 percent YoY to Rs 212 crore in Q1 of FY24 versus Rs 173 crore in the same period a year ago. The EBITDA margin came in at 26.2 percent as against 26.8 percent in the year-ago quarter.

During the quarter, the company marked three events: the previously announced acquisition of a biologics manufacturing facility in Bangalore from Stelis Biopharma Ltd; the receipt of regulatory approval for the commercial manufacturing plant in Mangalore from the US Food and Drug Administration; and the acquisition of additional land in Hyderabad to support further growth.

"First quarter performance was strong, led by development and manufacturing services and well supported by our research divisions: Discovery Services and the Dedicated Centers," said Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International.

"We are pleased to report a solid start to the year. The financial performance is in line with the revenue growth guidance for the year on a constant currency basis. At 25 percent, EBITDA growth reflects better operating leverage as we gain scale in development and manufacturing services," said Sibaji Biswas, Chief Financial Officer, Syngene International.

"We made investments in growing our portfolios in biologics manufacturing and discovery services. Despite these investments, the Company will continue to maintain a strong balance sheet and a low debt profile,” Biswas said.

Shares of Syngene International settled 1.59 percent lower at Rs 764.40 apiece in trade today. The stock gained 5 percent in the last one month, while it rallied 32 percent since the beginning of this year.

First Published:Jul 26, 2023 5:03 PM IST