Syngene AGM to Approve Rs1.25 Dividend per 10 Rs Share

In the upcoming Annual General Meeting (AGM) of Syngene for Wednesday, July 24, 2024, at 3:30 pm IST. one of the key issues shareholders might look out far is divdined declaration The Board of Syngene International Limited has recommended a final dividend of ₹1.25 per share for FY24.

This will result in a total payout of ₹503.17 million, along with applicable taxes. If approved at the Annual General Meeting (AGM), the dividend will be paid to members listed in the Company’s Register of Members as of June 28, 2024. The payout date is set on or before August 5, 2024.

The AGM meeting will be held through Video Conferencing and Other Audio-Visual Means to also discuss the other key issues like 

1. Adoption of Audited Financial Statements for FY 2023-24.
2. Declaration of ₹1.25 dividend per ₹10 share for FY 2023-24.
3. Re-appointment of Ms. Kiran Mazumdar Shaw as Director.
4. Re-appointment of Dr. Kush Parmar as Independent Director.
5. Appointment of Ms. Manja Boerman as Independent Director.

Syngene Annual Report 

Syngene International Limited has achieved remarkable milestones in FY 2024, showcasing robust financial performance and strategic advancements across its business verticals. The company's consolidated revenue surged by 20% year-on-year, reaching INR 35,000 million, while standalone revenue stood strong at INR 30,000 million.

This growth was driven by significant contributions from its core segments: Discovery Services, Development and Manufacturing Services, and Dedicated R&D Centers.

Management's analysis highlights key strengths, including Syngene's state-of-the-art infrastructure, strategic collaborations with global pharma giants, and a commitment to digital transformation.

The company launched multiple initiatives such as the adoption of Electronic Lab Notebooks (ELNs) and the implementation of a Material Requirement Planning (MRP) system to enhance operational efficiency and compliance.

However, Syngene also faced challenges, notably in managing supply chain disruptions and regulatory hurdles. Despite these obstacles, the future outlook remains optimistic, with plans to expand capabilities in biologics, small molecules, and advanced therapeutic platforms.

Key projects completed include the commissioning of a centralized compound management facility in Hyderabad and the launch of the Induced Pluripotent Stem Cells (iPSCs) platform.

Looking ahead, Syngene is poised for continued growth, leveraging its technological prowess and strategic partnerships to drive innovation and deliver value to stakeholders.

Key Financial Metrics:

The company's key financial metrics that shareholders and investors should look out for are given below 

• Consolidated Revenue: INR 35,000 million
• Standalone Revenue: INR 30,000 million
• Revenue: Increased by 0.82% to ₹32,911 million.
• EBITDA: Decreased by 3.82% to ₹9,668 million.
• Profit After Tax: Decreased by 1.39% to ₹4,665 million.

Standalone Performance (FY24 vs. FY23)

FY24 Financial Performance (Consolidated)

Notes:

• Interest income of ₹158 million from an income tax refund for FY 2009-10 and FY 2010-11 is included under "Other Income".
• Reversal of income tax provision amounting to ₹232 million due to favorable tax assessment orders.
• Exceptional item in FY24 pertains to transaction costs related to the acquisition of the multi-modal facility from Stelis Biopharma Limited.
• Normalized PAT for FY24 adjusts for interest income (net of tax ₹127 million) and the reversal of income tax provision of ₹232 million.

Operational Review:

Syngene is an integrated research, development, and manufacturing services company serving global pharmaceutical, biotechnology, and other sectors. With over 5600 scientists, Syngene offers robust data security and quality manufacturing, accelerating time-to-market and reducing innovation costs.

Discovery Services:

Syngene's Discovery Services offers comprehensive research and development solutions to global pharmaceutical, biotechnology, and other industries. The company focuses on accelerating innovation with its advanced scientific capabilities and state-of-the-art facilities.

• Impacted by the US biotech funding slowdown, but signs of stabilization are emerging.
• Purchased 17-acre land in Genome Valley, Hyderabad, to expand research operations, with new facilities planned for FY25.
• Added biologics assay capability at Hyderabad campus.

Development Services:

Syngene International Ltd., a leading contract research organization, specializes in providing integrated discovery and development services in the last financial year Commissioned a non-GMP facility in Bangalore for early-phase development projects.

Manufacturing Services:

The Company has done also well in building up its capability of the manufacturing its capacity in the past year. Some of them are listed below 

• Acquired biologics manufacturing facility from Stelis Biopharma Ltd., expected to be operational in the second half of FY25.
• Progressed on a 10-year biologics manufacturing agreement with Zoetis.
• Commissioned a state-of-the-art Quality Control laboratory.
• Mangalore facility received US FDA approval and ISO: 50001 certification.

Dedicated R&D Centers:

The company also operates the Key R&D sectors that focus on improving its knowledge capacity. 

• Operates centers for Amgen, Baxter, and Bristol-Myers Squibb, reporting steady performance. Key initiative that happened are 

• Digital transformation through ELNs and MRP system
• Expansion of biologics and small molecule platforms

Projects Completed:

In the last financial year company completed the key projects which are listed below. 

• Centralized compound management facility in Hyderabad
• Launch of iPSCs platform

Future Outlook:

The Syngene annual report has highlighted the key things to look out for in the upcoming year which are given below. 

• Expansion in biologics and advanced therapeutic platforms
• Strengthening global strategic partnerships

Syngene's FY 2024 performance underscores its resilience and strategic vision, setting a strong foundation for future growth and innovation.

Read the full Notice and Annual Report Here  

Syngene 

Syngene International Ltd., established in 1993 and publicly listed in India, is a leading contract research, development, and manufacturing organization (CRDMO). It serves diverse sectors including pharmaceuticals, biotechnology, animal healthcare, consumer goods, and agrochemicals.

Syngene collaborates with global leaders, startups, academic institutions, and government bodies, leveraging a team of over 6000 scientists and specialized platforms like SynVent for drug discovery and development.

The company emphasizes innovation, efficiency, and sustainability, with a strong focus on corporate governance and ESG principles. Their integrated services and global supply chain ensure seamless support to clients worldwide, facilitating rapid market access and patient benefit.