Q2 Results: Margins Affected By Expansion Plans, Says Syngene International
Syngene International Ltd.’s plans to expand in the U.S. and Europe and investments to improve quality standards impacted its margin growth for the quarter ended September, said its Chief Executive Officer Jonathan Hunt.
“Margins not growing at the same rate as revenue is a matter of choice and reflects on our strategy,” Hunt said in an interaction with BloombergQuint. “We’re investing in enhancing our quality and safety systems and bringing in automation improvements.”
He said the healthcare research company was expanding in the U.S. by recruiting more people for its sales and marketing arm.
The vertical for dedicated centres—in specific its strategic partnerships with Bristol-Myers Squibb and Baxter—contributed to revenue growth, he said.
Key Highlights: (Year-on-Year)
- Revenue grew 25 percent to Rs 419 crore.
- Net profit rose 2 percent to Rs 78 crore.
- Ebitda up 29 percent to Rs 132 crore.
- Ebitda margin expanded 110 basis points to 31.4 percent.
Watch the full interaction: