Syngene International Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shyam Srinivasan - Goldman Sachs - Analyst : Good evening and thank you for taking my question. Just on the revenue guidance cut, right? So I think earlier we had a high single digit growth. I know it started with a range, high single digit to low double digit. Now we have come to say -- can I assume it's like mid single digit dollar like 5%. I'm not asking you to pin down a number, but just trying to see this trajectory of revenue revisions downwards. If you could help us understand the qualitative comment around 8 to 12 weeks. But, you know, in terms of when we started the year versus now, what's been the biggest miss for us in terms of expectation with this reality? And two also, if you could also help us give the split of the businesses between, CRO and CDMO research versus CDMO. Has there been a mix shift in the nine months or maybe in the forecasted 12 months so that we can get a sense of where the weakness is higher or lower. So those are my two questions.

Question: Shyam Srinivasan - Goldman Sachs - Analyst : Yes. So, maybe you put this number out only once a year. So fair to assume like 100 basis points - 200 basis points of the 60% has actually come off, right. I would imagine -- we're trying to assess the decline in the CRO business. I think that's what we're trying to assess at the generally.

Question: Shyam Srinivasan - Goldman Sachs - Analyst : Understood. And last question, just macro. There's been a delay in the whole US by Secure Act being cleared by. I'm not asking you to comment on legislation, but from a conversion of these projects, like you said, there's a pilot project that has been converted. Has there been any behavioral change or are people now reluctant to kind of -- or there's the urgency to move things out of China, let's assume, has that reduced? So any comments on that.

Question: Shyam Srinivasan - Goldman Sachs - Analyst : Okay, thanks. Thanks, Jonathan.

Question: Shyam Srinivasan - Goldman Sachs - Analyst : Got it. Thank you all the best.

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Yeah, hi. Thank you for the opportunity. Am I audible?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Yeah. Thank you so much for the opportunity. Jonathan, you talked about positive momentum in the CDMO division led by Biologic. Does this mean that the new facility which is going to come on stream, you already have customers for that. And how should we think about ramp up of that capacity as and when it comes on street?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Understood. No. Fair point. Other question, Jonathan, we spent two years now with the single digit kind of growth FY24 and '25. And you always articulate your reasons well. The question is, you know, the next two years or maybe three, how different should they look, you know, versus the last two, where we spent single digit while we continue to invest in the business for the longer term. But, revenue growth is.

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Understood. And the last is, if I may, what is your employee strength and the scientific talent and strength?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : So it's largely unchanged on the March '24 number as on today?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Okay. Thank you so much.

Question: Alankar Garude - Kotak Institutional Equities - Analyst : Hi, thank you for the opportunity. So one question on the technology bit or the capabilities bit. Now out of the various capabilities or technologies such as revitalization, slow chemistry, column chromatography, which we offer, which ones would you say are our [putte]? And similarly, I mean, which would be the technologies where you think that there is some catching up to do in terms of the depth of our offering.

Question: Alankar Garude - Kotak Institutional Equities - Analyst : Understood. The second one is more of a clarification. Now, last month in December, there was this FDA letter which came for Librela. This is not really a new issue, but just wanted to understand, get confidence from you whether that $50 million number, annual number, do you foresee any risk to that all?

Question: Alankar Garude - Kotak Institutional Equities - Analyst : So essentially on that $500 million number, you don't foresee any risk as of now.

Question: Alankar Garude - Kotak Institutional Equities - Analyst : Madhav Marda, Fidelity International.

Question: Bharat Seth - Quest Investment - Analyst : Sir. Thanks for the opportunity. I want to understand how do we integrate the IT on the research side to expedite as well as AI part side. So if you can give some color and our road map for the same.

Question: Bharat Seth - Quest Investment - Analyst : I guess. Yeah. But if you would have to think of from, say 2, 3 years, how do you think that can really benefit on the efficiency side or ringing down the cost? So, any color do we have at this moment or will wait? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 23, 2025 / 12:30PM, SYNN.NS - Q3 2025 Syngene International Ltd Earnings Call

Question: Bharat Seth - Quest Investment - Analyst : Okay, thanks a lot, sir. I have one question for Deepak. In the initial remark, you said that?

Question: Bharat Seth - Quest Investment - Analyst : Yeah, see we said that we take the hedging for the 12 months. Is it fair understanding, the rolling 12 months or for our financial year only?

Question: Bharat Seth - Quest Investment - Analyst : Financial year. Okay. So again, let me say, next hedging will be a little higher rate than what we already have. Correct.

Question: Bharat Seth - Quest Investment - Analyst : Thank you. Thanks a lot.

Question: Bharat Seth - Quest Investment - Analyst : Thanks a lot.

Question: Neha Manpuria - Bank of America - Analyst : Thanks for taking my question. Jonathan, based on your comments that, there is a structural need by you know, innovators to look at alternate location to China. Is there any investments you think we need to make to increase our commercial footprint in order to get that business, you know, with the competitive dynamics changing, you know, globally.

Question: Neha Manpuria - Bank of America - Analyst : And, but that would this addition be more in the recent years or, it's -- I understand it would have been obviously investing this but has that focus increased, that investment increase, let's say in the last few quarters, with this entire noise around biosecure, etcetera, whether it happens or not. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 23, 2025 / 12:30PM, SYNN.NS - Q3 2025 Syngene International Ltd Earnings Call

Question: Neha Manpuria - Bank of America - Analyst : And just an extension to that question. Some of our peers have argued that it's an advantage to have, let's say manufacturing or R&D facilities closer to customers. Would that be a direction that, you could think of from a capital allocation perspective in the next few years? Or that's something that you think the way we are structured now with our capacities in India makes more sense for Syngene.

Question: Neha Manpuria - Bank of America - Analyst : Yeah, that's helpful. And one last quick question if I mean. Our Baxter dedicated service contract was supposed to you know, come and get over in 2024, start in 2024. So is that renewed, is it up for renewal? Any update on that?

Question: Neha Manpuria - Bank of America - Analyst : Thank you so much.