Operating profit margin has declined from 29.97% to 29.07%, leading to 13.94% rise in operating profit to Rs 177.40 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.09% to 29.32%.   Employee cost decreased from 30.80% to 29.47%.   Other expenses fell from 14.35% to 12.89%.   

Other income fell 6.52% to Rs 12.9 crore.  PBIDT rose 12.27% to Rs 190.3 crore.  Provision for interest fell 81.82% to Rs 1.2 crore.  Loan funds rose to Rs 883.50 crore as of 30 September 2021 from Rs 777.10 crore as of 30 September 2020.  Inventories rose to Rs 165.50 crore as of 30 September 2021 from Rs 58.20 crore as of 30 September 2020.  Sundry debtors were higher at Rs 357.30 crore as of 30 September 2021 compared to Rs 265.10 crore as of 30 September 2020.  Cash and bank balance declined from Rs 714.80 crore as of 30 September 2020 to Rs 335.70 crore as of 30 September 2021.  Investments rose to Rs 925.30 crore as of 30 September 2021 from Rs 605.60 crore as of 30 September 2020 .  

PBDT rose 16.08% to Rs 189.1 crore.  Provision for depreciation rose 10.92% to Rs 76.2 crore.  Fixed assets increased to Rs 2,446.60 crore as of 30 September 2021 from Rs 2,307.50 crore as of 30 September 2020.  Intangible assets declined from Rs 16.90 crore to Rs 15.40 crore.  

Profit before tax grew 19.85% to Rs 112.90 crore.  Share of profit/loss were nil in both the periods. Exceptional item expense was of Rs 30.7 crore compared to nil in September 2020. Provision for tax was expense of Rs 15.5 crore, compared to Rs 10.1 crore.  Effective tax rate was 18.86% compared to 10.72%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 20.69% to Rs 66.70 crore.  

Equity capital increased from Rs 400.00 crore as of 30 September 2020 to Rs 400.80 crore as of 30 September 2021.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 70.42% as of 30 September 2021 ,compared to 70.61% as of 30 September 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Syngene International has increased 28% to Rs 1204.7 crore.  

Operating profit margin has declined from 29.77% to 28.42%, leading to 22.20% rise in operating profit to Rs 342.40 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 23.63% to 31.64%.   Employee cost decreased from 31.82% to 28.86%.   Other expenses fell from 14.99% to 11.72%.   

Other income fell 13.40% to Rs 25.2 crore.  PBIDT rose 18.85% to Rs 367.6 crore.  Provision for interest fell 35% to Rs 9.1 crore.  Loan funds rose to Rs 883.50 crore as of 30 September 2021 from Rs 777.10 crore as of 30 September 2020.  Inventories rose to Rs 165.50 crore as of 30 September 2021 from Rs 58.20 crore as of 30 September 2020.  Sundry debtors were higher at Rs 357.30 crore as of 30 September 2021 compared to Rs 265.10 crore as of 30 September 2020.  Cash and bank balance declined from Rs 714.80 crore as of 30 September 2020 to Rs 335.70 crore as of 30 September 2021.  Investments rose to Rs 925.30 crore as of 30 September 2021 from Rs 605.60 crore as of 30 September 2020 .  

PBDT rose 21.40% to Rs 358.5 crore.  Provision for depreciation rose 11.94% to Rs 150.9 crore.  Fixed assets increased to Rs 2,446.60 crore as of 30 September 2021 from Rs 2,307.50 crore as of 30 September 2020.  Intangible assets declined from Rs 16.90 crore to Rs 15.40 crore.  

Profit before tax grew 29.35% to Rs 207.60 crore.  Share of profit/loss were nil in both the periods. Exceptional item expense was of Rs 30.7 crore compared to nil in H1 FY21.  Provision for tax was expense of Rs 32.9 crore, compared to Rs 18.4 crore.  Effective tax rate was 18.60% compared to 11.46%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 1.34% to Rs 144.00 crore.  

Equity capital increased from Rs 400.00 crore as of 30 September 2020 to Rs 400.80 crore as of 30 September 2021.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 70.42% as of 30 September 2021 ,compared to 70.61% as of 30 September 2020 .  

Cash flow from operating activities decreased to Rs 60.90 crore for YTD ended September 2021 from Rs 105.50 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 190.70 crore, compared to Rs 190.80 crore during the YTD ended September 2020.  

Full year results analysis.

Net sales (including other operating income) of Syngene International has increased 8.57% to Rs 2184.3 crore.  

Operating profit margin has jumped from 30.71% to 30.76%, leading to 8.72% rise in operating profit to Rs 671.80 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 25.79% to 24.97%.   Employee cost increased from 28.86% to 29.88%.   Other expenses rose from 14.63% to 14.75%.   

Other income fell 20.83% to Rs 64.6 crore.  PBIDT rose 5.28% to Rs 736.4 crore.  Provision for interest fell 19.94% to Rs 27.7 crore.  Loan funds rose to Rs 892.90 crore as of 31 March 2021 from Rs 396.20 crore as of 31 March 2020.  Inventories rose to Rs 59.60 crore as of 31 March 2021 from Rs 25.20 crore as of 31 March 2020.  Sundry debtors were lower at Rs 339.20 crore as of 31 March 2021 compared to Rs 398.20 crore as of 31 March 2020.  Cash and bank balance rose to Rs 642.60 crore as of 31 March 2021 from Rs 281.50 crore as of 31 March 2020.  Investments declined from Rs 776.40 crore as of 31 March 2020 to Rs 702.00 crore as of 31 March 2021.  

PBDT rose 6.59% to Rs 708.7 crore.  Provision for depreciation rose 25.17% to Rs 274.5 crore.  Fixed assets increased to Rs 2,419.10 crore as of 31 March 2021 from Rs 2,233.10 crore as of 31 March 2020.  Intangible assets declined from Rs 20.70 crore to Rs 19.10 crore.  

Profit before tax down 2.56% to Rs 434.20 crore.  Share of profit/loss were nil in both the periods.  Extraordinary items were decreased to Rs 35.00 crore.  Provision for tax was expense of Rs 64.3 crore, compared to Rs 104.8 crore.  Effective tax rate was 13.70% compared to 20.27%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 1.75% to Rs 404.90 crore.  

Equity capital stood at Rs 400.00 crore as of 31 March 2021 to Rs 400.00 crore as of 31 March 2020.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 70.58% as of 31 March 2021 ,compared to 70.69% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 701.20 crore for year ended March 2021 from Rs 677.10 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 446.50 crore, compared to Rs 643.10 crore during the year ended March 2020.  

Other Highlights

Company's client base in biologics manufacturing expanded during the quarter.

Exceptional item includes reversal of Rs 25.3 crore of service export incentives(net of tax) in relation to FY20 due to Government notification in the quarter capping the incentives for the research and development services at Rs 5 crore per exporter.

In FY21, USA contributed 74% of total sales, Europe 12%, Japan 5%, ROW 5% and India 4%.

Company's end-to-end platform enables it to be a 'one-stop-shop' for discovery, development and manufacturing of small and large molecules.

Company continued to manufacture remdesivir for COVID-19, under a voluntary licensing agreement from Gilead.

Management commentary: Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, "The second quarter was characterized by positive performances in all divisions. In Discovery Services, we saw excellent client demand, particularly within the emerging biopharma segment, as well as further expansion of our relationships with existing clients and our long-term partners in the dedicated research centers. During the quarter, we continued to manufacture remdesivir for COVID-19, under a voluntary licensing agreement from Gilead. The quarter also saw continued investment in new technologies and the successful implementation of several digitization and automation projects across our operations. These investments play an important role in enhancing productivity, reducing the impact of human error and improving quality systems across our business. We are pleased to have delivered a strong performance in the first half of the year. Careful management of costs, coupled with a robust business continuity plan, enabled us to continue to build capability and capacity to meet the growing requirements of our clients. Notwithstanding the continuing uncertainty of the pandemic, we believe that we are wellpositioned to deliver our guidance of mid-teens revenue growth for the full year."