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GLENMARK LIFE SCIENCES 2022-23 Annual Report Analysis

Wed, 13 Sep

GLENMARK LIFE SCIENCES 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 LIFE SCIENCES Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.7% in FY23 as against 29.0% in FY22.
• Depreciation charges increased by 11.1% and finance costs decreased by 98.0% YoY, respectively.
• Other income grew by 96.9% YoY.
• Net profit for the year grew by 11.5% YoY.
• Net profit margins during the year grew from 19.7% in FY22 to 21.6% in FY23.

GLENMARK LIFE SCIENCES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,232	21,612	1.8%
Other income	Rs m	147	290	96.9%
Total Revenues	Rs m	21,379	21,902	2.4%
Gross profit	Rs m	6,161	6,423	4.3%
Depreciation	Rs m	379	421	11.1%
Interest	Rs m	280	5	-98.0%
Profit before tax	Rs m	5,649	6,286	11.3%
Tax	Rs m	1,462	1,616	10.6%
Profit after tax	Rs m	4,187	4,670	11.5%
Gross profit margin	%	29.0	29.7
Effective tax rate	%	25.9	25.7
Net profit margin	%	19.7	21.6

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GLENMARK LIFE SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 37.0%.
• Current assets rose 11% and stood at Rs 24 billion, while fixed assets rose 21% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 14%.

GLENMARK LIFE SCIENCES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,508	21,315	3.9
Current Liabilities	Rs m	7,468	10,228	37.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,338	32,205	13.6
Current assets	Rs m	21,274	23,687	11.3
Fixed Assets	Rs m	7,064	8,518	20.6
Total Assets	Rs m	28,338	32,205	13.6

GLENMARK LIFE SCIENCES Cash Flow Statement Analysis

• GLENMARK LIFE SCIENCES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 26.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 4 billion net cash flows seen during FY22.

GLENMARK LIFE SCIENCES 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	5,976	3,134	-47.6%
Cash Flow from Investing Activities	Rs m	-1,222	-1,541	-
Cash Flow from Financing Activities	Rs m	-788	-3,876	-
Net Cash Flow	Rs m	3,966	-2,283	-

Current Valuations for GLENMARK LIFE SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.1, an improvement from the EPS of Rs 34.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 618.5, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	173.3	176.4
TTM Earnings per share	Rs	34.2	38.1
Diluted earnings per share	Rs	34.2	38.1
Price to Cash Flow	x	12.3	10.9
TTM P/E ratio	x	13.4	15.4
Price / Book Value ratio	x	3.5	2.6
Market Cap	Rs m	72,043	55,321
Dividends per share (Unadj.)	Rs	21.0	21.0

Ratio Analysis for GLENMARK LIFE SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.8x 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 improved and stood at 1,150.2x during FY23, from 21.2x 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 improved and stood at 21.9% during FY23, from 20.4% 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 improved and stood at 29.5% during FY23, from 28.9% 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 14.5% during FY23, from 15.8% 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	2.8	2.3
Debtors’ Days	Days	116	136
Interest coverage	x	21.2	1,150.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.8	14.5
Return on equity	%	20.4	21.9
Return on capital employed	%	28.9	29.5

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

GLENMARK LIFE SCIENCES Share Price Performance

Over the last one year, GLENMARK LIFE SCIENCES share price has moved up from Rs 443.8 to Rs 618.5, registering a gain of Rs 174.8 or around 39.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,365.9 (up 0.3%). Over the last one year it has moved up from 23,293.4 to 28,365.9, a gain of 5,073 points (up 21.8%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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