GLENMARK PHARMA 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

GLENMARK PHARMA 2018-19 Annual Report Analysis
Thu, 5 Sep

GLENMARK PHARMA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GLENMARK PHARMA Income Statement Analysis

  • Operating income during the year rose 8.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.1% in FY19 as against 17.7% in FY18.
  • Depreciation charges increased by 8.0% and finance costs increased by 17.2% YoY, respectively.
  • Other income grew by 127.7% YoY.
  • Net profit for the year grew by 15.1% YoY.
  • Net profit margins during the year grew from 8.7% in FY18 to 9.2% in FY19.

GLENMARK PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 91,031 98,655 8.4%
Other income Rs m 914 2,081 127.7%
Total Revenues Rs m 91,945 100,736 9.6%
Gross profit Rs m 16,154 15,858 -1.8%
Depreciation Rs m 3,019 3,259 8.0%
Interest Rs m 2,856 3,346 17.2%
Profit before tax Rs m 11,193 11,335 1.3%
Tax Rs m 3,155 3,756 19.1%
Profit after tax Rs m 8,039 9,250 15.1%
Gross profit margin % 17.7 16.1
Effective tax rate % 28.2 33.1
Net profit margin % 8.7 9.2
* 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 FY19 stood at Rs 40 billion as compared to Rs 33 billion in FY18, thereby witnessing an increase of 22.3%.
  • Long-term debt down at Rs 36 billion as compared to Rs 41 billion during FY18, a fall of 13.7%.
  • Current assets fell 4% and stood at Rs 67 billion, while fixed assets rose 15% and stood at Rs 33 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 133 billion as against Rs 126 billion during FY18, thereby witnessing a growth of 6%.

GLENMARK PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 51,635 56,052 8.6
 
Current Liabilities Rs m 32,879 40,211 22.3
Long-term Debt Rs m 41,418 35,738 -13.7
Total Liabilities Rs m 125,954 132,888 5.5
 
Current assets Rs m 69,887 66,968 -4.2
Fixed Assets Rs m 28,892 33,322 15.3
Total Assets Rs m 125,954 132,888 5.5
* 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 FY19 stood at Rs 13 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -7 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -3 billion from the Rs 2 billion net cash flows seen during FY18.

GLENMARK PHARMA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 16,481 13,242 -19.7%
Cash Flow from Investing Activities Rs m -10,133 -6,990 -
Cash Flow from Financing Activities Rs m -4,685 -7,387 -
Net Cash Flow Rs m 1,770 -2,971 -
* 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 32.8, an improvement from the EPS of Rs 28.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 388.6, stands at 13.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 322.6 349.6
TTM Earnings per share Rs 28.5 32.8
Diluted earnings per share Rs 29.6 34.1
Price to Cash Flow x 9.9 8.4
TTM P/E ratio x 13.7 13.2
Price / Book Value ratio x 4.0 3.0
Market Cap Rs m 109,651 105,419
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 deteriorated and stood at 1.7x during FY19, from 2.1x during FY18. 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 4.4x during FY19, from 4.9x during FY18. 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 improved and stood at 16.5% during FY19, from 15.6% during FY19. 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 improved and stood at 17.8% during FY19, from 15.1% during FY18. 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 improved and stood at 9.5% during FY19, from 8.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.1 1.7
Debtors’ Days Days 93 81
Interest coverage x 4.9 4.4
Debt to equity ratio x 0.8 0.6
Return on assets % 8.6 9.5
Return on equity % 15.6 16.5
Return on capital employed % 15.1 17.8
* 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 down from Rs 672.6 to Rs 388.6, registering a loss of Rs 284.0 or around 42.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,837.9 (up 0.5%). Over the last one year it has moved down from 15,819.5 to 12,837.9, a loss of 2,982 points (down 18.8%).

Overall, the S&P BSE SENSEX is down 3.5% over the year.

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

Equitymaster requests your view! Post a comment on "GLENMARK PHARMA 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

GLENMARK PHARMA Announces Quarterly Results (1QFY20); Net Profit Down 53.1% (Quarterly Result Update)

Aug 28, 2019 | Updated on Aug 28, 2019

For the quarter ended June 2019, GLENMARK PHARMA has posted a net profit of Rs 1 bn (down 53.1% YoY). Sales on the other hand came in at Rs 23 bn (up 7.3% YoY). Read on for a complete analysis of GLENMARK PHARMA's quarterly results.

GLENMARK PHARMA Announces Quarterly Results (4QFY19); Net Profit Up 6.6% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, GLENMARK PHARMA has posted a net profit of Rs 2 bn (up 6.6% YoY). Sales on the other hand came in at Rs 26 bn (up 12.4% YoY). Read on for a complete analysis of GLENMARK PHARMA's quarterly results.

GLENMARK PHARMA 2017-18 Annual Report Analysis (Annual Result Update)

Dec 19, 2018 | Updated on Dec 19, 2018

Here's an analysis of the annual report of GLENMARK PHARMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of GLENMARK PHARMA. Also includes updates on the valuation of GLENMARK PHARMA.

Glenmark: Most Geographies Show Weak Growth (Quarterly Results Update - Detailed)

Nov 7, 2017

Poor show in the US, Latam and India hit profits during the quarter.

Glenmark: Zetia Bolsters Sales and Profits (Quarterly Results Update - Detailed)

Oct 30, 2017

The 180-day exclusivity for Zetia enabled Glenmark to show strong growth in sales and profits during the quarter.

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

Rebound Riches Could be Yours With These Stocks(Profit Hunter)

Oct 4, 2019

The secret to multibagger is not big businesses, but great managements... Here's how to find them to make the most of once in a decade rebound opportunity.

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK GLENMARK PHARMA

  • Track your investment in GLENMARK PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON GLENMARK PHARMA

GLENMARK PHARMA - SUVEN LIFESCIENCES COMPARISON

COMPARE GLENMARK PHARMA WITH

MARKET STATS