Results     27-Jul-23
Analysis
Syngene International
NP up 26.39%
For quarter ended June 2023, consolidated Net sales (including other operating income) of Syngene International has increased 25.38% to Rs 808.1 crore compared to quarter ended June 2022.  Operating profit margin has declined from 26.81% to 26.22%, leading to 22.63% rise in operating profit to Rs 211.90 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 30.31% to 27.26%.   Employee cost decreased from 26.83% to 26.77%.   Other expenses rose from 17.94% to 19.63%.   

Other income rose 52.26% to Rs 23.6 crore.  PBIDT rose 25.07% to Rs 235.5 crore.  Provision for interest rose 11.70% to Rs 10.5 crore.  

PBDT rose 25.77% to Rs 225 crore.  Provision for depreciation rose 18.58% to Rs 102.1 crore.  

Profit before tax grew 32.44% to Rs 122.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 29.5 crore, compared to Rs 18.9 crore.  Effective tax rate was 24.00% compared to 20.37%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 26.39% to Rs 93.40 crore.  

Promoters’ stake was 54.80% as of 30 June 2023 ,compared to 70.29% as of 30 June 2022 .  

Full year results analysis.

Net sales (including other operating income) of Syngene International has increased 22.61% to Rs 3192.9 crore.  Operating profit margin has declined from 30.57% to 29.26%, leading to 17.37% rise in operating profit to Rs 934.40 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.35% to 27.89%.   Employee cost decreased from 27.35% to 26.02%.   Other expenses rose from 12.99% to 17.21%.   Loss on forex transaction fell from 2.09% to 1.29%.   

Other income rose 34.28% to Rs 70.9 crore.  PBIDT rose 18.42% to Rs 1005.3 crore.  Provision for interest rose 87.55% to Rs 45.2 crore.  Loan funds declined from Rs 1,021.60 crore as of 31 March 2022 to Rs 815.20 crore as of 31 March 2023.  Inventories rose to Rs 332.80 crore as of 31 March 2023 from Rs 179.40 crore as of 31 March 2022.  Sundry debtors were higher at Rs 529.30 crore as of 31 March 2023 compared to Rs 507.70 crore as of 31 March 2022.  Cash and bank balance rose to Rs 531.70 crore as of 31 March 2023 from Rs 517.90 crore as of 31 March 2022.  Investments declined from Rs 1,034.10 crore as of 31 March 2022 to Rs 918.50 crore as of 31 March 2023.  

PBDT rose 16.40% to Rs 960.1 crore.  Provision for depreciation rose 18.34% to Rs 366.5 crore.  Fixed assets increased to Rs 2,825.30 crore as of 31 March 2023 from Rs 2,726.60 crore as of 31 March 2022.  Intangible assets increased from Rs 12.60 crore to Rs 18.50 crore.  

Profit before tax grew 15.24% to Rs 593.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 129.2 crore, compared to Rs 88.6 crore.  Effective tax rate was 21.77% compared to 18.29%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 17.33% to Rs 464.40 crore.  

Equity capital increased from Rs 400.80 crore as of 31 March 2022 to Rs 401.40 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 54.88% as of 31 March 2023 ,compared to 70.41% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 823.50 crore for year ended March 2023 from Rs 580.60 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 518.30 crore, compared to Rs 475.50 crore during the year ended March 2022.  

Business Highlights

In Biologics manufacturing, Syngene continued to make good progress on the long term contract with Zoetis. Additionally, the Company has entered into a binding term sheet to acquire a multi-modal facility (Unit 3) from Stelis Biopharma, adding 20,000 liters of installed biologics drug substance manufacturing capacity, with scope for further expansion, and a high speed, commercialscale, fill-finish unit.


Management Comments :
Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “First quarter performance was strong, led by Development and Manufacturing Services and well supported by our research divisions: Discovery Services and the Dedicated Centers. Earlier this month we announced our intention to acquire a site offering additional biologics manufacturing capacity close to our existing Bangalore campus. With 20,000 liters of installed biologics capacity - and scope for further expansion – the site strengthens our position as a leading biologics contract development and manufacturing service provider. Also during the quarter, we were pleased to receive US FDA approval for our API facility in Mangalore. This approval reflects the robust quality standards applied in all our operations and represents an important building block for our small molecule commercial manufacturing strategy. Finally, we completed the acquisition of development land in Hyderabad to support the long-term growth ambitions of our Research Services division. Together, these actions show meaningful progress on our strategy to become a global leader in both research services (CRO) and manufacturing services (CDMO) and give us the capacity we need for the next stage of growth.”

Sibaji Biswas, Chief Financial Officer, Syngene International added, “We are pleased to report a solid start to the year.The financial performance is in line with the revenue growth guidance for the year on a constant currency basis. At 25%, EBITDA growth reflects better operating leverage as we gain scale in development and manufacturing services. We made investments in growing our portfolios in biologics manufacturing and discovery services. Despite these investments, the Company will continue to maintain a strong balance sheet and a low debt profile.”

 



Syngene International : Consolidated Results
 Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)808.10644.5025.383,192.902,604.2022.61
OPM (%)26.2226.81-59 bps29.2630.57-130 bps
OP211.90172.8022.63934.40796.1017.37
Other Inc.23.6015.5052.2670.9052.8034.28
PBIDT235.50188.3025.071,005.30848.9018.42
Interest10.509.4011.7045.2024.1087.55
PBDT225.00178.9025.77960.10824.8016.40
Depreciation102.186.118.58366.5309.718.34
PBT122.9092.8032.44593.6515.115.24
Share of Profit/(Loss) from Associates00-00-
PBT before EO122.992.832.44593.6515.115.24
EO Income00-0-30.7-
PBT after EO122.992.832.44593.6484.422.54
Taxation29.518.956.08129.288.645.82
PAT93.473.926.39464.4395.817.33
Minority Interest (MI)00-00-
Net profit93.473.926.39464.4395.817.33
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations93.473.926.39464.4395.817.33
EPS (Rs)*2.321.8426.3911.5510.4710.34
* EPS is on current equity of Rs 402.02 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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