Syngene International Ltd Research ReportQ3FY21

Growth trajectory maintained, outlook upbeat… Q3FY21 revenues grew 12.6% YoY to ~| 584 crore driven by sustained performance from all divisions. EBITDA margins improved 58 bps YoY to 30.1% with better gross margins due to change in product mix, better procurement and energy efficiency being partly offset by higher employee and other expenditure. EBITDA grew 14.8% YoY to | 176 crore. Net profit grew 11.3% YoY to | 102 crore. Delta vis-a-vis EBITDA was due to higher depreciation and lower other income partially offset by lower tax rate. Integrated business model, customer stickiness to the fore Revenues grew at ~16% CAGR in FY16-20 to | 2012 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five years. It has a pool of 4240 scientists. The client base has grown from 256 to 362 over FY16-20.