GLENMARK PHARMA 2017-18 Annual Report Analysis

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GLENMARK PHARMA 2017-18 Annual Report Analysis
Wed, 19 Dec

GLENMARK PHARMA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GLENMARK PHARMA Income Statement Analysis

  • Operating income during the year fell 0.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY18 as against 22.2% in FY17.
  • Depreciation charges increased by 14.2% and finance costs increased by 20.3% YoY, respectively.
  • Other income grew by 144.6% YoY.
  • Net profit for the year declined by 27.5% YoY.
  • Net profit margins during the year declined from 12.0% in FY17 to 8.7% in FY18.

GLENMARK PHARMA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 91,857 91,031 -0.9%
Other income Rs m 374 914 144.6%
Total Revenues Rs m 92,230 91,945 -0.3%
Gross profit Rs m 20,367 16,154 -20.7%
Depreciation Rs m 2,644 3,019 14.2%
Interest Rs m 2,373 2,856 20.3%
Profit before tax Rs m 15,724 11,193 -28.8%
Tax Rs m 3,827 3,155 -17.6%
Profit after tax Rs m 11,088 8,039 -27.5%
Gross profit margin % 22.2 17.7
Effective tax rate % 24.3 28.2
Net profit margin % 12.0 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GLENMARK PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 33 billion as compared to Rs 27 billion in FY17, thereby witnessing an increase of 21.7%.
  • Long-term debt down at Rs 41 billion as compared to Rs 45 billion during FY17, a fall of 8.7%.
  • Current assets rose 2% and stood at Rs 70 billion, while fixed assets rose 20% and stood at Rs 29 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 126 billion as against Rs 118 billion during FY17, thereby witnessing a growth of 7%.

GLENMARK PHARMA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 44,925 51,635 14.9
 
Current Liabilities Rs m 27,027 32,879 21.7
Long-term Debt Rs m 45,363 41,418 -8.7
Total Liabilities Rs m 117,639 125,954 7.1
 
Current assets Rs m 68,746 69,887 1.7
Fixed Assets Rs m 24,132 28,892 19.7
Total Assets Rs m 117,639 125,954 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GLENMARK PHARMA Cash Flow Statement Analysis

  • GLENMARK PHARMA's cash flow from operating activities (CFO) during FY18 stood at Rs 16 billion, an improvement of 150.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 42.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY17.

GLENMARK PHARMA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 6,574 16,481 150.7%
Cash Flow from Investing Activities Rs m -7,124 -10,133 -
Cash Flow from Financing Activities Rs m 5,432 -4,685 -
Net Cash Flow Rs m 1,992 1,770 -11.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GLENMARK PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.5, an decline from the EPS of Rs 39.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 683.2, stands at 20.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 325.5 322.6
TTM Earnings per share Rs 39.3 28.5
Diluted earnings per share Rs 40.9 29.6
Price to Cash Flow x 14.0 16.8
TTM P/E ratio x 21.3 20.5
Price / Book Value ratio x 5.4 4.0
Market Cap Rs m 192,779 185,338
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GLENMARK PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY18, from 2.5x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 4.9x during FY18, from 7.6x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 15.6% during FY18, from 24.7% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 15.1% during FY18, from 19.1% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 8.6% during FY18, from 11.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.5 2.1
Debtors’ Days Days 96 93
Interest coverage x 7.6 4.9
Debt to equity ratio x 1.0 0.8
Return on assets % 11.4 8.6
Return on equity % 24.7 15.6
Return on capital employed % 19.1 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GLENMARK PHARMA has performed over the last 5 years, please visit here.

GLENMARK PHARMA Share Price Performance

Over the last one year, GLENMARK PHARMA share price has moved up from Rs 542.1 to Rs 683.2, registering a gain of Rs 141.1 or around 26.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,877.6 (up 0.2%). Over the last one year it has moved down from 14,277.1 to 13,877.6, a loss of 400 points (down 2.8%).

Overall, the S&P BSE SENSEX is up 8.7% over the year.

(To know more, check out historical annual results for GLENMARK PHARMA and quarterly results for GLENMARK PHARMA)

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