Syngene International Limited has announced Capex plan in the range of Rs. 750 - 900 crore (US $100 - 120 million) for FY 2021-22.

This year the focus will be on investment-led growth with expansion in infrastructure, staff headcount and capability additions across core businesses and the ramp-up of our sales presence in key markets. Reported EBITDA margins are expected to stay at, or around, 30%. The company continues to invest in the growth of our business with additional capex investments which are likely to lead to single digit profit growth.

In another development, Syngene International Limited reported fourth quarter revenue from operations of Rs. 659 crore and Rs. 2,184 crore for the full year. Underlying revenue from operations (excluding export incentives) for the quarter grew 13% compared with the same period last year and by 12% for the full year. Profit after tax (before exceptional gain) for the quarter increased by 15% year-on-year to Rs. 138 crore, and by 4% to Rs. 382 crore for the full year.

Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited said, "Syngene's fourth quarter revenue reflects steady growth from Discovery Services, Manufacturing Services and Dedicated Centres through the year. The highlight of the quarter was the extension of our long-standing partnership with Bristol Myers Squibb (BMS) until 2030. This renewal underlines the value we deliver as BMS's largest R&D hub outside the US. Under the new agreement, we will increase the number of scientists working on BMS projects and expand our scope of work to cover new areas of science."

Owing to the uncertainty created by an unprecedented second wave of the COVID-19 pandemic in India, the Board of Directors have deemed it prudent not to declare a dividend for the FY 2020-21 in order to prioritise cash and maintain liquidity. As the business environment evolves over the coming months, the Board will review the dividend payable for FY 2021-22.