Syngene reports second-quarter results for revenue from its operations
Mumbai, India: Syngene International Limited today announced its second-quarter results for FY22. The Company reported quarterly revenue from operations growth of 17% year-on-year to Rs. 6,102 Mn; profit after tax for the quarter, before the exceptional item, increased by 9% year-on-year to Rs. 920 Mn.
Commenting on the results, 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 well-positioned to deliver our guidance of mid-teens revenue growth for the full year.”
Quarterly Financial Highlights (All numbers are in Indian rupees in Million except margins):
| Q2 FY22 | Q2 FY21 | YoY Change (%) | |
| Revenue from Operations | 6,102 | 5,196 | 17% |
| Revenue | 6,231 | 5,334 | 17% |
| EBITDA | 1,903 | 1,695 | 12% |
| EBITDA margin (%) | 31 | 32 | |
| PAT before exceptional item | 920 | 841 | 9% |
| PAT Margin (%) | 15 | 16 | |
| PAT after exceptional item | 667 | 841 | (21%) |
H1 FY22 Financial Highlights (All numbers are in Indian rupees in Million except margins):
H1FY22 H1FY21 YoY Change (%)
| Revenue | 12,047 | 9,412 | 28% |
| Revenue from operations | 12,299 | 9,703 | 27% |
| EBITDA | 3,676 | 3,093 | 19% |
| EBITDA Margin (%) | 30 | 32 | |
| PAT before exceptional item | 1,693 | 1,421 | 19% |
| PAT Margin (%) | 14 | 15 | |
| PAT after exceptional item | 1,440 | 1,421 | 1% |
During the quarter, the Company has taken an exceptional downward adjustment of Rs. 253 million (net of tax) on account of the Government’s recent decision in the quarter to cap the Services Export Incentive Scheme (SEIS) for research and development services at Rs. 50 million for the Financial Year 2020. From the financial year 2016 to 2019 the Company benefited from the SEIS incentive at a rate of 5% on net foreign exchange earned. Following this precedence, the Company assumed a similar SEIS incentive would be available in Financial Year 2020 and included this in the financial results for that year. With the capping of incentives at Rs 50 million, the Company has reversed the differential SEIS claim receivables. This has been presented under exceptional items in the financial results for the quarter and half year ended 30 September 2021. In the absence of notification of continuation of SEIS, the company has not accrued any such incentives from FY21 onwards. Hence, the SEIS incentive reversal during the quarter for FY2020 is not indicative of the underlying performance of the business.
