Syngene International Ltd - Lower gross margin lead to EBIDTA miss - YES Securities

• Revenues up 17.4% YoY beating estimate of +15%; growth was broad-based led by strong performance for newer services like protein degradation and peptide synthesis within discovery services. US and European markets started returning to normalcy.
• Syngene continues to manufacture Remdesivir in Q2 though sales not quantified
• EBITDA margin at -130bps YoY below our estimates of 31% due to ~300bps decline in gross margin to 72.5% (one of the lowest in last several quarters barring Q1 FY22 which had large Remdesivir contribution); staff costs up 15% yoy on senior hiring across discovery, early development and biopharma teams.
• PAT before exceptional items was below estimates of Rs910mn. Exceptional include net reversal of Rs253mn in export incentives provisioned earlier which are now capped at Rs50mn. Reiterates mid-teens growth for FY22

Shares of Syngene International Limited was last trading in BSE at Rs. 579.50 as compared to the previous close of Rs. 594.85. The total number of shares traded during the day was 28892 in over 1375 trades.

The stock hit an intraday high of Rs. 606.35 and intraday low of 575.30. The net turnover during the day was Rs. 17100644.00.

Source : Equity Bulls

Keywords

SyngeneInternational INE398R01022 Pharmaceuticals YESSecurities