Syngene announces Q1 FY21 results

Mumbai, July 21, 2020: Syngene International Limited today announced its Q1 FY21 results. The Company posted quarterly revenue of Rs. 437 Cr, in line with guidance: Profit After Tax, was impacted less than expected, at Rs. 58 Cr for the quarter. 

Commenting on the results, Mr. Jonathan Hunt, Managing Director and Chief Executive Officer – Syngene International Limited, said: “In line with our guidance, Q1 revenue was flat at Rs. 437 Cr compared to the same quarter last year due to the temporary suspension of operations during the nationwide lockdown. However, the implementation of protective measures allowed all divisions to restart gradually and operate at close to normal levels for the last six weeks of the quarter. Across the Company, our teams have worked hard to get projects back on schedule. 

Recent good news was the improved credit rating from CRISIL to AA+ with a stable outlook. This is welcome recognition from the rating agency of the Company’s business model, strong client relationships, robust processes and sound risk profile. 

Overall Q1 performance was as expected and we look forward to returning to growth in 2Q.”

Quarterly Financial Highlights (All numbers in INR Cr except Margins)

Business Update

Syngene’s first quarter performance was driven by solid performances in Discovery Services and the Dedicated Centres. The national lockdown resulted in a temporary suspension of operations in all divisions. Since restarting, the expansion of shift working and other protection measures for employees allowed the divisions to return to near normal levels of operation and get client projects largely back on schedule. 

During the quarter, credit rating agency, CRISIL, conducted its annual review and based on its assessment of the Company’s strong fundamentals, sound business model and robust liquidity position, upgraded Syngene’s rating to AA+ /Stable from AA/Positive.  The upgrade reflects sustained improvement in operating performance, driven by healthy revenue growth and operating profitability. Other factors include: Syngene’s well-established market position in contract research; strong client base; and healthy financial risk profile.

As the COVID-19 pandemic continues to escalate, Syngene is actively engaged in various COVID-19 research and diagnostic projects. Its RT-PCR testing facility is supporting hospitals across Bangalore and has conducted more than 30,000 COVID-19 tests free of charge. It has also indigenously developed an ELISA testing kit that has been outsourced to HiMedia for manufacturing and distribution across the country. In Development Services, Syngene is supplying reagents for use in diagnostic kits for COVID-19 testing and has signed a voluntary licensing agreement with Gilead for manufacturing and supply of Remdesivir in India and other markets. 

Earnings Call

The Company will conduct a 60-minute call at 2.30 pm IST on 22nd July 2020 where the senior management will discuss the Company’s performance and answer questions from participants. To participate in this conference call, please dial the numbers provided below ten minutes ahead of the scheduled start time. The dial-in number for this call is +91 22 6280 1279 / +91 22 7115 8180. Other toll numbers are listed in the conference call invitation which is posted on the Company website www.syngeneintl.com. The operator will provide instructions on asking questions before the start of the call. A replay of this call will also be available till 1st August, 2020 on +91 22 7194 5757 / +91 22 6663 5757, Playback ID: 40395. We will aim to post the transcript of the conference call on the Company website within seven working days of the investor conference call.

About Syngene

Syngene International Ltd. (BSE: 539268, NSE: SYNGENE, ISIN: INE398R01022), is an integrated research, development and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods and specialty chemical sectors. Syngene’s 4200 scientists offer both skills and the capacity to deliver great science, robust data management and IP security and quality manufacturing, at speed, to improve time-to-market and lower the cost of innovation. With a combination of dedicated research facilities for Amgen, Baxter, Bristol-Myers Squibb and Herbalife, as well as 1.9 Mn sq ft of specialist discovery, development and manufacturing facilities, Syngene works with biotech companies pursuing leading edge science as well as multinationals including GSK and Merck KGaA. For more details, visit www.syngeneintl.com. 

Source : Syngene International Limited