Syngene International

Syngene International Q3 concall -

Received regulatory approvals for commercial biologics manufacturing from US,UK and EU during the Qtr

Sales up 23 pc at 787 cr

EBITDA up 14 pc at 231 cr

PAT up 5 pc at 110 cr

On track to achieve a revenue growth of high teens for FY 23

Last year had high Remdesevir sales for first 9Months. This FY, it has been zero

Without Remdesevir- Q3 sales are up 28 pc , 9M up 30 pc

EBITDA growth is lower at 14 pc due sub-scale manufacturing capacity utilization

Hedging losses at 16 cr led to lower bottomline growth

Higher Depreciation costs due absorption of heavy investments made over the past yr

Capex for 9M has been 400cr. An equal amount is under execution

For full FY 23, guiding for EBITDA margin of 30 pc

PAT to increase in single digits

PAT to grow at increased rates in FY 24 due kicking in of operating leverage

Disc- invested, biased


The manufacturing led growth is finally picking up for Syngene. Q4FY23 exports growth is ~ 51%.
I guess the zoetis supply has begun.

Found this image on twitter.

Disc- Invested


Next to Samsung Biologics :blush:


Investor Presentation


I feel it is a bit negative. Independence is good and that is why the company does the demergers.
I can be wrong as it is a first time I am observing something like this.

Is it usual to have a group ceo for 2 demerged entity?
Any take on it?

It’s not normal.
i see this as succession planning for Kiran M Shaw
This should be Good News for Biocon, otherwise Biocon is an unleashed potential


Here is the complete video.

There are looking for synergies and trying to use the unutilised capacity.

Syngene do have some unutilised capacity in Mangalore and Bangalore(Strides).

I don’t track Biocon(excluding Syngene) but know that their business is of biosimilars(biologics generics) and they can’t setup considerable new capacity for some time due to huge debt if they don’t have much now.
Neither they can sell more of Syngene to reduce debt as they will lose majority stakes in Syngene.

It is not a succession planning as confirmed by Kiran Shaw in the video.
Also it was said that the individual CEO will have the autonomy but some kind of contradicting statement was made later at 6:57.

Removing Syngene and intangibles, Biocon has the assest turnover ratio more than 1. I don’t have much knowledge about the optimal assest turnover of the biosimilars and generics but considering Syngene guide for 1X asset turnover, I guess Biocon(excluding Syngene) is utilised enough.

Strides(Bangalore) though purchased now has some kind of approvals still it was written that it will contribute meaningfully for Syngene bottom line from FY27. I can be totally wrong but they are looking at the Syngene Strides plant for their biosimilar production or even the mangalore plant for the generics production. It is little early and immature statement to make for now.

One of the thing that can make my point invalid is that if Biocon(excluding Syngene) has unutilised capacity for small molecule as well large molecule.

Disclosure : I can be terribly wrong. I am comparatively new to the market. Syngene is my high allocation bet.