Operating profit margin has slumped from 29.53% to 27.75%, leading to 32.53% rise in operating profit to Rs 165.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 21.83% to 34.04%.   Employee cost decreased from 33.07% to 28.22%.   Other expenses fell from 15.78% to 10.52%.   

Other income fell 19.61% to Rs 12.3 crore.  Provision for interest rose 6.76% to Rs 7.9 crore.  

Provision for depreciation rose 13.01% to Rs 74.7 crore.  

Profit before tax grew 42.84% to Rs 94.70 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 17.4 crore, compared to Rs 8.3 crore.  Effective tax rate was 18.37% compared to 12.52%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 33.28% to Rs 77.30 crore.  

Promoters' stake was 70.43% as of 30 June 2021 ,compared to 70.65% as of 30 June 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.  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.  

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 shrink 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

Syngene's first quarter performance reflects growth across all its business divisions as the Company continued to operate at normal levels.

Growth in profitability for the quarter is driven by increase in sales from existing clients and acquisition of new clients.

Growth in the Dedicated R&D Center business is partly due to the expansion of the Bristol Myers Squibb R&D center.

Revenue performance in Q1FY22 was also boosted by the manufacturing of remdesivir to fulfil high demand for the drug during second wave of covid 19.

During the quarter, the biologics business signed a five-year agreement with IAVI (International AIDS Vaccine Initiative), a USA based, non-profit scientific research organization, to develop and manufacture three recombinant, monoclonal antibodies (mAbs) for HIV.

Management believes drivers of growth going ahead are- client engagement, capacity expansion, capability additions and forward integration.

Management commentary: Jonathan Hunt, Managing Director and Chief Executive Officer said "We made a strong start to the financial year. Besides continuing progress across all our business divisions, growth for the quarter was strongly boosted by the manufacturing of COVID-19 treatment, Remdesivir, as we increased production to meet the needs of the second wave of COVID-19 in India. We also made headway with the expansion of our dedicated R&D center for Bristol Myers Squibb following the contract extension announced last quarter. As India faced a second wave of the pandemic, our safety protocols continued to provide a sustainable work environment enabling our staff to operate at normal levels and keep client projects on track. During the quarter, following government guidance, we were proud to be able to offer vaccinations to our staff and their families as an additional level of protection. Overall, first quarter performance was in line with our expectations and puts us on track to meet our full year growth guidance in the coming quarters."