The company has reported 14% increase in PAT after exceptional items to Rs 116.7 crore in Q2 FY24 from Rs 102 crore in Q2 FY23.

Exceptional item (net of tax) in FY24 pertains to transaction costs relating to the acquisition of multi modal facility (Unit 3) of Stelis Biopharma. Excluding the exception item, Syngene International's profit after tax (PAT) amounted to Rs 122 crore (up 20% YoY).

Revenue from operations rose by 18.5% YoY to Rs 910.1 crore during the quarter, around 15% at constant currency.

On the expenditure front, material costs and staff costs in Q2 FY24 increased by 34% YoY and 10% YoY, respectively. Other expenses shot up 18% YoY during the period under review.

While the company's EBITDA improved by 19% to Rs 275.7 crore, EBITDA margin remained stable at 29.6% in the second quarter of FY24 as compared with the same period last year.

Profit before tax in Q2 FY24 stood at Rs 158.1 crore, up by 22% from Rs 130 crore in Q2 FY23.

In its outlook, Syngene International stated: “While the Company delivered strong performance in the first half, with the temporary slowdown in US biotech funding, we expect continued growth at a lower level in the second half of the year. Adjusting for this, against our previous guidance of high teens constant currency growth, we now expect the revenue to grow at mid-teens on constant currency basis.”

Jonathan Hunt, managing director and chief executive officer, Syngene International, said, “I am pleased to report a strong set of results for the second quarter and first half of the financial year, particularly in our Development and Manufacturing Services.

In Development Services, we also added a new non-GMP capability center to meet market demand for agile, cost-efficient, early phase development and scale-up services. In Manufacturing, we made good progress on our long-term biologics partnership with Zoetis, as well as commissioning a state of the art, digitally-enabled Quality Control laboratory to support our growing biologics operations. The acquisition of a multi-modal facility from Stelis Biopharma Ltd, announced last quarter, is progressing.

Within research services, our Dedicated Centers made a steady contribution to growth and in Discovery Services, while global demand remained generally healthy, we saw the US based biotech segment showing signs of slowed growth year-on-year as companies adjust to a new funding environment.

Long term sector fundamentals remain strong and we expect continued growth but at a lower level in the second half of the year, this short-term slowing in the US biotech segment is reflected in our latest outlook.”

Syngene International is an integrated research, development, and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors.