Syngene International Ltd, the research arm of Biocon, reported a 9 per cent dip in profit after tax (PAT) at ₹106 crore in Q2 FY25, down from ₹117 crore in the same quarter the previous year.

Operational revenue fell 2 per cent to ₹891 crore from ₹910 crore in Q2FY24, with a 3 per cent decrease on a constant currency basis.

However, on a quarter-on-quarter (QoQ) basis, the PAT rose 40 percent from ₹75.7 crore in Q1FY25 to ₹106 crore, and operational revenue increased 13 per cent from ₹789.7 crore in the first quarter.

Signs of recovery

Commenting on the quarter, Jonathan Hunt, Managing Director and Chief Executive Officer of Syngene International Ltd, said, “The performance in the second quarter and the first half of the year was broadly flat, in line with our expectations. However, the company is observing early positive signs of recovery in Discovery Services, driven by collaborations on pilot projects with large and mid-sized biopharma clients seeking alternatives to China to rebalance their supply chains.”

The company has been receiving interest from clients in biologics, and additional manufacturing capacity, including increased requests for proposals (RFPs), on-site visits, and more than 60 audits in the first 6 months of the year, a 36 per cent increase compared to the same period last year.

“With a strong third quarter already underway, we expect to see a positive change in revenue trajectory in the third quarter and remain on track to deliver within our guidance range for the full year,” he said.

Sibaji Biswas, Executive Director and Chief Financial Officer, Syngene International Ltd, added, “With improving sequential revenues, and with recent investments in the research and CDMO businesses, we are in a good position to leverage opportunities to drive medium to long-term growth. The company maintains a robust balance sheet with a strong net cash position, enabling us to invest in strategic areas including digitization, commercial capabilities, and new technology to support growth.”

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