- 25 Jul 2024
- ICICI Securities
Syngene Q1FY25 – Weak numbers impacted by discovery services slow-down
SYNGENE - 869 Change: 14.95 (1.75 %)News: Sales de-grew ~2% YoY to ₹ 790 crore as Discovery services segment (~30% of the sales) continued to face challenges in the US biotech space due to difficult funding environment. Dedicated Centres (~30% of sales) and Development & Manufacturing segment (~40% of the sales) on the other hand did relatively better. EBITDA declined ~20% to ₹ 170 crore while margins dropped ~472 bps to 21.5% impacted by GPM drop of ~456 bps to 70.4% and 4% increase in total expenditure.
Views: The performance during the quarter was impacted by slowdown in Discovery services segment that anyway was expected. But the negative surprise came from GPM as well as EBITIDAM which dropped significantly. The management however has maintained better traction in H2 to be driven by reversal in the funding trend and growing client inquiries. We will get some more insight from the earnings call.
Impact: Negative