Syngene International gains 5% on healthy March quarter results

The company's profit after tax rose 20 per cent to Rs 120 crore relative to last year's profit of Rs 100 crore.

Shares of Syngene International were up 5 per cent at Rs 342 on the BSE on Thursday after the company reported a healthy 24 per cent year on year (YoY) growth in Ebitda (earnings before interest, taxes, depreciation and amortization) at Rs 225 crore in the March quarter of FY20 (Q4FY20). Ebitda margin, too, expanded by 300 basis points to 36 per cent from 33 per cent in year ago quarter.

The company posted quarterly revenue of Rs 628 crore, an jump of 13 per cent YoY from the corresponding quarter last year, when it had posted a revenue of Rs 555 crore. Profit after tax rose 20 per cent to Rs 120 crore relative to last year's profit of Rs 100 crore.

The fourth quarter performance was driven by strong growth in its discovery and development services divisions. During the quarter, the company commissioned a new research facility at Biocon Park in Bengaluru.

According to the management, the construction phase of the commercial scale API manufacturing facility in Mangalore was completed. The plant is currently in a critical phase of completing qualification and preparing for commencement of GMP commercial operations towards the end of this financial year.

The company further said it successfully cleared a US FDA inspection of its small molecule bioanalytical laboratory within the clinical development unit with no observations or formal discussion points.

At 10:09 am, the stock of Syngene International was trading 4 per cent higher at Rs 337 on the BSE, as compared to a 1.5 per cent decline in the S&P BSE Sensex. It hit a 52-week high of Rs 368 in June 2019. A combined 268,000 shares have changed hands on the counter on the NSE and BSE till the time of writing of this report.