Syngene International Q1 Review - Remdesivir Hit Operations, Capacity Expansion Continues: Dolat Capital

Clinical development services facility of Syngene International.  (Source: Company website)

Syngene International Q1 Review - Remdesivir Hit Operations, Capacity Expansion Continues: Dolat Capital

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Dolat Capital Report

Syngene International Ltd. reported an in-line Q1 on the earnings front at Rs 773 million despite a miss on the margins (25% Ebitda margins versus our estimate of 29%).

Topline growth of 41% YoY was driven by one-time contribution of Remdesivir (base revenue growth was ~15%).

Ebitda margins at 25% (down 160 basis points YoY, up 340bps QoQ) was a function of poor gross margins (67% due to higher inventory stocking and Remdesivir) adjusted for Remdesivir gross and Ebitda margins came in line.

Nonetheless, Syngene International's management remains confident of its growth trajectory and re-iterated its mid-teens revenue growth for FY22E on the back of continuous client additions, extension of existing contracts, increasing manufacturing and biological contributions besides currency tailwinds.

Click on the attachment to read the full report:

Dolat Capital Syngene International Q1FY22 Result Update.pdf

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