GLENMARK PHARMA 2022-23 Annual Report Analysis

Thu, 7 Sep

GLENMARK PHARMA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GLENMARK PHARMA Income Statement Analysis

• Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY23 as against 16.7% in FY22.
• Depreciation charges increased by 25.6% and finance costs increased by 17.3% YoY, respectively.
• Other income grew by 90.1% YoY.
• Net profit for the year declined by 62.0% YoY.
• Net profit margins during the year declined from 8.1% in FY22 to 2.9% in FY23.

GLENMARK PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	123,049	129,901	5.6%
Other income	Rs m	1,667	3,168	90.1%
Total Revenues	Rs m	124,716	133,069	6.7%
Gross profit	Rs m	20,594	15,125	-26.6%
Depreciation	Rs m	4,867	6,113	25.6%
Interest	Rs m	2,981	3,496	17.3%
Profit before tax	Rs m	14,412	8,685	-39.7%
Tax	Rs m	4,476	4,911	9.7%
Profit after tax	Rs m	9,936	3,774	-62.0%
Gross profit margin	%	16.7	11.6
Effective tax rate	%	31.1	56.5
Net profit margin	%	8.1	2.9

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GLENMARK PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 50 billion as compared to Rs 47 billion in FY22, thereby witnessing an increase of 7.6%.
• Long-term debt stood at Rs 39 billion as compared to Rs 26 billion during FY22, a growth of 49.8%.
• Current assets rose 19% and stood at Rs 99 billion, while fixed assets rose 8% and stood at Rs 77 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 176 billion as against Rs 154 billion during FY22, thereby witnessing a growth of 14%.

GLENMARK PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	90,703	94,563	4.3
Current Liabilities	Rs m	46,894	50,455	7.6
Long-term Debt	Rs m	25,717	38,521	49.8
Total Liabilities	Rs m	153,972	175,658	14.1
Current assets	Rs m	82,823	98,737	19.2
Fixed Assets	Rs m	71,148	76,920	8.1
Total Assets	Rs m	153,972	175,658	14.1

GLENMARK PHARMA Cash Flow Statement Analysis

• GLENMARK PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 58.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -775 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 325 million from the Rs 3 billion net cash flows seen during FY22.

GLENMARK PHARMA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	11,087	6,254	-43.6%
Cash Flow from Investing Activities	Rs m	-3,333	-5,285	-
Cash Flow from Financing Activities	Rs m	-5,205	-775	-
Net Cash Flow	Rs m	2,724	325	-88.1%

Current Valuations for GLENMARK PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.4, an decline from the EPS of Rs 35.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 790.9, stands at 65.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	436.1	460.4
TTM Earnings per share	Rs	35.2	13.4
Diluted earnings per share	Rs	35.2	13.4
Price to Cash Flow	x	8.4	11.9
TTM P/E ratio	x	12.6	65.7
Price / Book Value ratio	x	1.7	1.2
Market Cap	Rs m	156,067	117,953
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for GLENMARK PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.8x during FY22. 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 3.5x during FY23, from 5.8x during FY22. 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 4.0% during FY23, from 11.0% during FY23. 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 9.2% during FY23, from 14.9% during FY22. 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 4.1% during FY23, from 8.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	2.0
Debtors’ Days	Days	92	115
Interest coverage	x	5.8	3.5
Debt to equity ratio	x	0.3	0.4
Return on assets	%	8.4	4.1
Return on equity	%	11.0	4.0
Return on capital employed	%	14.9	9.2

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 384.5 to Rs 790.9, registering a gain of Rs 406.4 or around 105.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,380.5 (up 0.1%). Over the last one year it has moved up from 23,064.2 to 28,380.5, a gain of 5,316 points (up 23.1%).

Overall, the S&P BSE SENSEX is up 11.2% over the year.

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