Shares of Syngene International Ltd., Biocon's contract manufacturing and research arm hit a 52-week high on Thursday after the company beat its guidance for financial year 2023.

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Syngene’s revenue growth for full fiscal 2022-23 stood at 23 percent versus guidance of high-teen growth, while profit increased 17 percent compared with guidance of single-digit growth.

For the March quarter, revenue increased by 31.2 percent from the same period last year and 26.5 percent sequentially.

Operating profit, also known as EBITDA (earnings before interest, tax, depreciation and amortisation), for the March quarter stood at Rs 314.1 crore, up 25 percent from last year and 36 percent from the December quarter. EBITDA margin of 31.6 percent was the highest in four quarters.

Net profit increased by 21 percent from last year to Rs 178.7 crore.

Syngene said that all its business divisions -- discovery services, dedicated centres, development services and manufacturing services -- led to strong growth.

The numbers were also aided by the Zoetis partnership following successful inspections by the US, European Union and the United Kingdom.

To recall, Syngene had signed a 10-year agreement with animal health company Zoetis in July 2022 for its animal health drug Librela (for osteoarthritis). The company had said that the agreement is expected to be worth up to $500 million over 10 years.

Shares of Syngene are off opening highs but are trading with gains of 2.3 percent of Rs 638.25. It made a 52-week high of Rs 660 in intraday trading.

First Published:Apr 27, 2023 11:44 AM IST