Conference Call with Syngene International Ltd. Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript. Management in attendance: CEO Johnathan Hunt
Pharmaceuticals company Syngene International declares Q3FY22 result: Syngene reports 10% growth in revenue from operations to Rs. 6,414 Mn and raises full-year guidance The Company reported revenue from operations growth of 10% year-on-year to Rs. 6,414 Mn, delivering 10% growth in profit before tax to Rs. 1,284 Mn. Profit after tax for the quarter was Rs.1,040 Mn, representing year-on-year growth of 2%. Growth in profit after tax was impacted by a lower effective tax rate in the third quarter last year due to a tax reversal and other factors. For the nine months to December 31 2021, the Company delivered growth of 21% in revenue from operations to Rs.18,461 Mn and profit after tax, before exceptional items, was Rs 2,733 Mn, an increase of 12% compared the same period in the previous year. Based on the Company’s performance to date and the anticipated project deliveries in the fourth quarter, the Company updated the full year revenue growth guidance to high teens, from the mid-teen guidance shared at the beginning of the financial year. Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “Syngene’s performance across all divisions has been positive through the year, and we expect a busy fourth quarter. As a result, we have raised our revenue growth guidance for the full year to high teens. A highlight for the quarter was the extension of our long-standing collaboration with Amgen Inc until 2026. Since 2012, Syngene has been partnering with Amgen on research and development to address some of the most serious diseases in the world. We are delighted with our joint commitment to not only extend the term of this partnership but also add a new stateof-the-art dedicated laboratory to accelerate the advancement of Amgen’s R&D; projects. The 5-year renewal of the long-standing contract with Amgen, coming on the heels of the 10- year contract extension signed with BMS last year, confirms the stability of both relationships and provides a clear perspective on the future of our Dedicated Centers.” Result PDF
Conference Call with Syngene International Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Revenue from operations up 17% to Rs. 6,102 Mn PAT increased 9% to Rs. 920 Mn The Company reported quarterly revenue from operations growth of 17% year-on-year to Rs. 6,102 Mn; profit after tax for the quarter, before the exceptional item, increased by 9% year-on-year to Rs. 920 Mn. During the quarter, the Company has taken an exceptional downward adjustment of Rs. 253 million (net of tax) on account of the Government’s recent decision in the quarter to cap the Services Export Incentive Scheme (SEIS) for research and development services at Rs. 50 million for the Financial Year 2020. From the financial year 2016 to 2019 the Company benefited from the SEIS incentive at a rate of 5% on net foreign exchange earned. Following this precedence, the Company assumed a similar SEIS incentive would be available in Financial Year 2020 and included this in the financial results for that year. With capping of incentives at Rs 50 million, the Company has reversed the differential SEIS claim receivables. This has been presented under exceptional items in the financial results for the quarter and half year ended 30 September 2021. In the absence of notification of continuation of SEIS, the company has not accrued any such incentives from FY21 onwards. Hence, the SEIS incentive reversal during the quarter for FY2020 is not indicative of the underlying performance of the business. Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, "The second quarter was characterized by positive performances in all divisions. In Discovery Services, we saw excellent client demand, particularly within the emerging biopharma segment, as well as further expansion of our relationships with existing clients and our long-term partners in the dedicated research centers During the quarter, we continued to manufacture remdesivir for COVID-19, under a voluntary licensing agreement from Gilead. The quarter also saw continued investment in new technologies and the successful implementation of several digitization and automation projects across our operations. These investments play an important role in enhancing productivity, reducing the impact of human error and improving quality systems across our business. We are pleased to have delivered a strong performance in the first half of the year. Careful management of costs, coupled with a robust business continuity plan, enabled us to continue to build capability and capacity to meet the growing requirements of our clients. Notwithstanding the continuing uncertainty of the pandemic, we believe that we are wellpositioned to deliver our guidance of mid-teens revenue growth for the full year.” Result PDF