Syngene Q1 profit rises 28% to Rs59.8 crore
Hyderabad: Syngene International Ltd, the contract research services arm of biopharmaceutical firm Biocon Ltd, on Thursday reported a 28% increase in net profit for the quarter ended 30 June.
It said the performance was led by sustained momentum across key verticals including dedicated centres, discovery services as well as development and manufacturing services.
Profit rose to Rs.59.8 crore in the fiscal first quarter, from Rs.46.6 crore in the year-ago period. The profit was notched up on a 17.5% increase in revenue to Rs.274.5 crore from Rs.233.7 crore.
“We are pleased to report a good start for the year with all our three verticals performing as expected,” said Jonathan Hunt, chief executive officer (CEO) of Syngene.
Hunt assumed charge as CEO on 1 April, replacing Peter Bains, who will continue as a board member.
During the first quarter, the company commissioned the first phase of Syngene Research Centre (SRC), spread across 50,000 square feet (sqft) area in Bengaluru. When fully commissioned, SRC will have a total area of 200,000 sq ft that will support integrated discovery and development programmes.
The company also said it commissioned its viral testing facility in Bengaluru on 1 July. The facility will provide niche services to support the viral testing requirements of pharma and biotech company.
The viral testing facility as well as SRC are part of Syngene’s ongoing $200 million capital expenditure programme, of which around 30% has been spent till date, the company said.
“We are confident that these new facilities will add to our capabilities and contribute to our growth in the future,” Hunt said.
Syngene said its client base increased to 256 from 221 a year ago. The top three clients—Bristol Myers Squibb Co. (BMS), Abbott Nutrition Inc. and Baxter International Inc.—account for around 40% of revenue.
BMS, Syngene’s top client, contributed about 29% of the overall revenue.
As of 31 March, Biocon held a 74.55% stake in Syngene.
Shares of Syngene gained 2.1% to Rs.431.50 on a day the benchmark Sensex fell 0.74% to 27,710.52 points.