Results     27-Apr-23
Analysis
Syngene International
NP jumped 20.91%
For quarter ended March 2023, consolidated Net sales (including other operating income) of Syngene International has increased 31.17% to Rs 994.4 crore compared to quarter ended Mar 2022. Operating profit margin has declined from 33.02% to 31.59%, leading to 25.49% rise in operating profit to Rs 314.10 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.37% to 26.78%.   Employee cost increased from 23.85% to 24.83%.   Other expenses fell from 16.40% to 15.56%.   Loss on forex transaction fell from 1.25% to 0.44%.   

Other income rose 55.10% to Rs 22.8 crore.  PBIDT rose 27.13% to Rs 336.9 crore.  Provision for interest rose 85.71% to Rs 10.4 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 25.87% to Rs 326.5 crore.  Provision for depreciation rose 19.05% to Rs 95.6 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 28.92% to Rs 230.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 52.2 crore, compared to Rs 31.3 crore.  Effective tax rate was 22.61% compared to 17.48%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 20.91% to Rs 178.70 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 .  

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.  

Dividend update

Board recommended a final dividend of Rs 1.25 per Equity Share of Rs 10 (comprising a regular dividend of Re 0.50 per share and a special additional dividend of Re 0.75 per share to mark the 30th anniversary of the founding of the Company in November 1993). The record date is fixed as Friday, June 30, 2023 for payment of dividend.


Management Comments :
Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “Strong growth in the fourth quarter, added to a positive performance over the course of the year, delivered full-year results ahead of our upgraded guidance. All business divisions delivered growth through the year triggering investment in additional laboratory capacity and new facilities at our campuses in Bangalore and Hyderabad, as well as creating over 1000 new jobs. Manufacturing Services had a particularly strong year, led by our commercial-scale biologics manufacturing business which had a busy fourth quarter supporting our partnership with Zoetis, following successful regulatory inspections by the US, European and UK regulatory authorities. Looking ahead, we are optimistic - despite challenges such as inflation, geopolitical uncertainties and recessionary pressures visible in some regions of the world - that our performance over the last year and the progress we have made on the strategic development of the Company, position us well for the year ahead.”

Sibaji Biswas, Chief Financial Officer, Syngene International added, “I am pleased to report a strong performance throughout the year, including our biggest ever quarter to finish this fiscal year. Our robust business model, broad customer base and strong balance sheet, combined with a tight focus on execution, enabled us to deliver revenue growth of 23% year-on-year, margins at around 30% and increased net cash of Rs 224 Crs. As a result, in this fiscal year, the Company delivered the highest absolute year-on-year increase in revenue and EBITDA that we have seen in the last 5 years, providing a strong foundation for our future plans.”



Syngene International : Consolidated Results
 Quarter endedYear ended
Particulars202303202203Var.(%)202303202203Var.(%)
Net Sales (including other operating income)994.40758.1031.173,192.902,604.2022.61
OPM (%)31.5933.02-143 bps29.2630.57-130 bps
OP314.10250.3025.49934.40796.1017.37
Other Inc.22.8014.7055.1070.9052.8034.28
PBIDT336.90265.0027.131,005.30848.9018.42
Interest10.405.6085.7145.2024.1087.55
PBDT326.50259.4025.87960.10824.8016.40
Depreciation95.680.319.05366.5309.718.34
PBT230.90179.1028.92593.6515.115.24
Share of Profit/(Loss) from Associates00-00-
PBT before EO230.9179.128.92593.6515.115.24
EO Income00-0-30.7-
PBT after EO230.9179.128.92593.6484.422.54
Taxation52.231.366.77129.288.645.82
PAT178.7147.820.91464.4395.817.33
Minority Interest (MI)00-00-
Net profit178.7147.820.91464.4395.817.33
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations178.7147.820.91464.4395.817.33
EPS (Rs)*4.453.6820.9111.5710.4810.34
* EPS is on current equity of Rs 401.43 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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