Syngene International rose 1.68% to Rs 613.15 after the company's consolidated net profit rose 15% to Rs 138 crore on 13% rise in revenue from operations to Rs 659 crore in Q4 FY21 over Q4 FY20.
EBITDA rose 4% to Rs 234 crore in the fourth quarter as against Rs 225 crore recorded in the same period last year. EBITDA margin was at 34.5% as on 31 March 2021 as compared to 35.8% as on 31 March 2020.
Syngene's fourth-quarter growth was driven by steady performance across discovery services, manufacturing services and the dedicated centres.
Owing to the uncertainty created by the unprecedented second wave of COVID-19 in India, the board of directors has deemed it prudent not to declare a dividend for the financial year 2020-21 in order to prioritise cash and maintain liquidity. As the business environment evolves over the coming months, the board will review the dividend payable for FY 2021-22, the company said.
Jonathan Hunt, managing director and chief executive officer, Syngene International, said, "Syngene's fourth quarter revenue reflects steady growth from discovery services, manufacturing services and the dedicated centres through the year.
The highlight of the quarter was the extension of our long-standing partnership with Bristol Myers Squibb (BMS) until 2030. This renewal underlines the value we deliver as BMS's largest R&D hub outside the US. Under the new agreement, we will increase the number of scientists working on BMS projects and expand our scope of work to cover new areas of science.
Syngene International recorded 4% increase in consolidated net profit to Rs 382 crore on 12% rise in revenue from operations to Rs 2,180 in the year ended 31 March 2021 over the year ended 31 March 2020.
In its guidance, the company said: "Despite the continuing uncertainty due to the pandemic, the focus of FY22 is to deliver a higher level of business growth: we expect growth in revenue from operations to be in the mid-teens range in the coming year. The year will focus on investment-led growth with expansion in infrastructure, staff headcount and capability additions across our core businesses and the ramp-up of our sales presence in key markets.
Reported EBITDA margins are expected to stay at, or around, 30%. We continue to invest in the growth of our business with additional capex investments which are likely to lead to single digit profit growth.
Our capex plan is expected to be in the range of Rs. 750- 900 Cr (USD 100 - 120 mn) for the financial year. This guidance includes the COVID pandemic as a continuing factor but assumes that there is no material deterioration in our operating environment. Should there be a material change in the operating environment, the company will revisit and update its guidance as needed through the year."
Syngene International is an integrated research, development and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods and specialty chemical sectors.
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