- 28 Apr 2022
- ICICIdirect Research
SYNGENE REPORTS BEAT ON ESTIMATES, GUIDING MID-TEEN GROWTH
SYNGENE - 812 Change: -7.25 (-0.88 %)News: Revenue for Q4FY22 grew 15% YoY to ~Rs 758 crore driven by strong quarter for Development Services as it caught up on postponed projects in addition to planned work. EBITDA margins improved 31 bps YoY to 33% due to lower employee expenditure offsetting the lower gross margins (down 381 bps YoY to 72%). EBITDA grew 16% YoY to Rs 250 crore. Net profit grew 7% YoY to Rs 148 crore. Delta vis-à-vis EBITDA is mainly due to higher depreciation being partially offset by lower tax and interest expenses and other income
Views: Research based divisions, Discovery Services and the Dedicated Centres have delivered sustained growth throughout the year, propelling Syngene’s top line to grow 19% YoY in FY22 to Rs 2604 crore. SynVent, Syngene’s Integrated Drug Discovery (IDD) platform made a significant contribution as the number of IDD projects increased by ~40% YoY. Realization per scientist (~ 5,300) has increased by 6% YoY to Rs 49 lakhs. Management is guiding for mid-teen growth and ~ 30% EBITDA margins in FY23. Syngene remains a compelling play in the CRO space with elite client profile and is well positioned for sustainable growth and improving operating leverage from FY24\
Impact: Positive