Syngene International: Healthy showing

Share price of Syngene International rallied 5% today at Rs 342 after the Asia’s largest contract research firm guided for double digit growth growth during the current fiscal. However, it expects Apr-Jun quarter earnings performance to remain study due to the ongoing lockdown in the country.
Syngene posted a healthy 24% 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% from 33% in year ago quarter.
The company booked quarterly revenue of Rs 628 crore, an jump of 13% YoY from the corresponding quarter last year, when it had posted a revenue of Rs 555 crore. Profit after tax rose 20% 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.
The company’s API manufacturing facility in Mangalore was completed and 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 has successfully cleared a US FDA inspection of its small molecule bioanalytical laboratory within the clinical development unit with no observations or formal discussion points.

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