GLENMARK PHARMA 2020-21 Annual Report Analysis

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GLENMARK PHARMA 2020-21 Annual Report Analysis
Mon, 6 Sep

GLENMARK PHARMA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GLENMARK PHARMA Income Statement Analysis

  • Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.5% in FY21 as against 16.3% in FY20.
  • Depreciation charges increased by 6.3% and finance costs decreased by 6.4% YoY, respectively.
  • Other income declined by 68.5% YoY.
  • Net profit for the year grew by 25.0% YoY.
  • Net profit margins during the year grew from 7.2% in FY20 to 8.8% in FY21.

GLENMARK PHARMA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 106,410 109,439 2.8%
Other income Rs m 1,596 502 -68.5%
Total Revenues Rs m 108,006 109,941 1.8%
Gross profit Rs m 17,310 21,289 23.0%
Depreciation Rs m 4,172 4,436 6.3%
Interest Rs m 3,773 3,531 -6.4%
Profit before tax Rs m 10,961 13,825 26.1%
Tax Rs m 3,201 4,124 28.8%
Profit after tax Rs m 7,760 9,701 25.0%
Gross profit margin % 16.3 19.5
Effective tax rate % 29.2 29.8
Net profit margin % 7.2 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GLENMARK PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 42 billion as compared to Rs 41 billion in FY20, thereby witnessing an increase of 1.8%.
  • Long-term debt down at Rs 39 billion as compared to Rs 40 billion during FY20, a fall of 3.8%.
  • Current assets rose 8% and stood at Rs 74 billion, while fixed assets rose 4% and stood at Rs 67 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 141 billion as against Rs 132 billion during FY20, thereby witnessing a growth of 6%.

GLENMARK PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 60,568 70,430 16.3
 
Current Liabilities Rs m 41,260 42,010 1.8
Long-term Debt Rs m 40,430 38,888 -3.8
Total Liabilities Rs m 132,291 140,689 6.3
 
Current assets Rs m 68,036 73,596 8.2
Fixed Assets Rs m 64,255 67,093 4.4
Total Assets Rs m 132,291 140,689 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GLENMARK PHARMA Cash Flow Statement Analysis

  • GLENMARK PHARMA's cash flow from operating activities (CFO) during FY21 stood at Rs 11 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 278 million from the Rs 2 billion net cash flows seen during FY20.

GLENMARK PHARMA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 13,924 11,312 -18.8%
Cash Flow from Investing Activities Rs m -7,835 -6,752 -
Cash Flow from Financing Activities Rs m -4,447 -4,418 -
Net Cash Flow Rs m 1,740 278 -84.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GLENMARK PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.4, an improvement from the EPS of Rs 27.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 536.4, stands at 14.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 377.1 387.8
TTM Earnings per share Rs 27.5 34.4
Diluted earnings per share Rs 27.5 34.4
Price to Cash Flow x 12.7 10.7
TTM P/E ratio x 14.8 14.8
Price / Book Value ratio x 1.9 1.5
Market Cap Rs m 151,355 151,355
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GLENMARK PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.6x during FY20. 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 improved and stood at 4.9x during FY21, from 3.9x during FY20. 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 13.8% during FY21, from 12.8% during FY21. 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 15.9% during FY21, from 14.6% during FY20. 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 9.4% during FY21, from 8.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.6 1.8
Debtors’ Days Days 83 86
Interest coverage x 3.9 4.9
Debt to equity ratio x 0.7 0.6
Return on assets % 8.7 9.4
Return on equity % 12.8 13.8
Return on capital employed % 14.6 15.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 476.1 to Rs 536.4, registering a gain of Rs 60.3 or around 12.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,760.0 (up 0.0%). Over the last one year it has moved up from 18,734.2 to 26,760.0, a gain of 8,026 points (up 42.8%).

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

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Related Views on News

GLENMARK PHARMA Announces Quarterly Results (1QFY22); Net Profit Up 20.7% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, GLENMARK PHARMA has posted a net profit of Rs 3 bn (up 20.7% YoY). Sales on the other hand came in at Rs 30 bn (up 26.4% YoY). Read on for a complete analysis of GLENMARK PHARMA's quarterly results.

GLENMARK PHARMA Announces Quarterly Results (1QFY21); Net Profit Up 132.5% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, GLENMARK PHARMA has posted a net profit of Rs 3 bn (up 132.5% YoY). Sales on the other hand came in at Rs 23 bn (up 0.9% YoY). Read on for a complete analysis of GLENMARK PHARMA's quarterly results.

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