Syngene Q2 operations revenue stands at INR 519 Crore, up 12% year on year

New Delhi: Syngene International has announced its second-quarter results. The company posted quarterly total revenue of INR 533 Crore compared to INR 485 Crore in the corresponding quarter of last year. EBITDA for the quarter was up 6% to INR 169 Crore while PAT was up 2% to INR 84 Crore.

In a further boost to the company’s credit rating, ICRA upgraded its credit rating in August from AA to AA+.

Commenting on the results, Mr. Jonathan Hunt, Managing Director and Chief Executive Officer – Syngene International Limited, said: “The second quarter saw a positive return to growth following a muted first quarter that was impacted by COVID-19, with second-quarter revenue from operations growing 12% year-on-year and a PAT growth of 2%. This result reflects a robust operating performance as we have adapted to the COVID-19 situation. We are at near-normal operating levels with all our scientists working on site with proper protective measures.”

He added: “We are happy to continue to support the global health community in the fight against COVID-19 through our dedicated RT PCR testing laboratory, our research efforts and by developing and supplying reagents and oligonucleotides to diagnostic kit manufacturers.”

The credit rating upgrade by ICRA is a further affirmation of Syngene’s strong fundamentals and the confidence the market has in our growth story. We expect to sustain our growth through the second half and are making good progress towards achieving our full-year guidance.”

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

***H1 FY21 Financial Highlights (All numbers in INR Cr except Margins)

Business Update

Syngene’s second quarter performance was primarily driven by good performance in the Discovery Services and Dedicated R&D Centre divisions. After implementing a broad array of COVID-19 protective and control measures, including regular free testing for all employees working on site, operations have returned to near normal operating levels.

The Company commenced manufacturing of Remdesivir at its manufacturing facility in Bengaluru with initial distribution expected during the third quarter.

Syngene continues to make an active contribution to the fight against COVID-19. In addition to processing COVID-19 tests for hospitals in the Bengaluru region, the Company has tied up with more than 50 organizations in and around Bengaluru to conduct RT-PCR tests for their employees. The Company’s IgG based ELISA test kit has received the ICMR and CDSCO approvals and will be launched by HiMedia shortly. This type of kit will be particularly important to measure optimum immune response once vaccine deployment has started. Furthermore, the Company has joined a global industry consortium, led by a long-standing research partner, Bristol Myers Squibb, to support research related to COVID-19. The consortium will share relevant expertise and experience to accelerate the understanding of the virus and work towards improving and deploying current assays and new approaches to COVID-19 testing.