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GSK PHARMA 2018-19 Annual Report Analysis
Sun, 31 Mar

GSK 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.

GSK PHARMA Income Statement Analysis

  • Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.1% in FY19 as against 18.4% in FY18.
  • Depreciation charges increased by 27.9% and finance costs increased by 193.1% YoY, respectively.
  • Other income grew by 87.6% YoY.
  • Net profit for the year grew by 27.0% YoY.
  • Net profit margins during the year grew from 12.3% in FY18 to 14.2% in FY19.

GSK PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 28,473 31,281 9.9%
Other income Rs m 545 1,023 87.6%
Total Revenues Rs m 29,018 32,304 11.3%
Gross profit Rs m 5,236 6,295 20.2%
Depreciation Rs m 380 486 27.9%
Interest Rs m 2 6 193.1%
Profit before tax Rs m 5,400 6,827 26.4%
Tax Rs m 1,892 2,373 25.4%
Profit after tax Rs m 3,507 4,454 27.0%
Gross profit margin % 18.4 20.1
Effective tax rate % 35.0 34.8
Net profit margin % 12.3 14.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GSK PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 28 billion as compared to Rs 29 billion in FY18, thereby witnessing an decrease of -4.9%.
  • Long-term debt down at Rs 2 million as compared to Rs 6 million during FY18, a fall of 69.6%.
  • Current assets fell 5% and stood at Rs 34 billion, while fixed assets rose 8% and stood at Rs 44 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 78 billion as against Rs 76 billion during FY18, thereby witnessing a growth of 2%.

GSK PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,573 21,398 4.0
 
Current Liabilities Rs m 29,490 28,041 -4.9
Long-term Debt Rs m 6 2 -69.6
Total Liabilities Rs m 76,388 78,043 2.2
 
Current assets Rs m 35,355 33,592 -5.0
Fixed Assets Rs m 41,033 44,451 8.3
Total Assets Rs m 76,388 78,043 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GSK PHARMA Cash Flow Statement Analysis

  • GSK PHARMA's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 47.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -1 billion from the Rs 620 million net cash flows seen during FY18.

GSK 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 4,728 4,095 -13.4%
Cash Flow from Investing Activities Rs m -1,042 -1,535 -
Cash Flow from Financing Activities Rs m -3,066 -3,584 -
Net Cash Flow Rs m 620 -1,023 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GSK PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.3, an decline from the EPS of Rs 41.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,299.9, stands at 51.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 7.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 83.1 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 336.2 184.6
TTM Earnings per share Rs 41.4 26.3
Diluted earnings per share Rs 20.7 26.3
Price to Cash Flow x 90.9 83.1
TTM P/E ratio x 100.4 51.8
Price / Book Value ratio x 9.9 19.2
Market Cap Rs m 203,287 410,644
Dividends per share (Unadj.) Rs 35.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GSK PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.2x 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 1,233.3x during FY19, from 2,858.0x 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 20.8% during FY19, from 17.0% 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 31.9% during FY19, from 26.2% 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 5.7% during FY19, from 4.6% 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 1.2 1.2
Debtors’ Days Days 188 141
Interest coverage x 2,858.0 1,233.3
Debt to equity ratio x 0.0 0.0
Return on assets % 4.6 5.7
Return on equity % 17.0 20.8
Return on capital employed % 26.2 31.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

GSK PHARMA Share Price Performance

Over the last one year, GSK PHARMA share price has moved down from Rs 2,085.4 to Rs 1,299.9, registering a loss of Rs 785.6 or around 37.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of GSK PHARMA?

GSK PHARMA currently trades at Rs 1,958.1 per share. You can check out the latest share price performance of GSK PHARMA here...

What was the revenue of GSK PHARMA in FY19? How does it compare to earlier years?

The revenues of GSK PHARMA stood at Rs 32,304 m in FY19, which was up 11.3% compared to Rs 29,018 m reported in FY18.

GSK PHARMA's revenue has fallen from Rs 35,156 m in FY15 to Rs 32,304 m in FY19.

Over the past 5 years, the revenue of GSK PHARMA has grown at a CAGR of -2.1%.

What was the net profit of GSK PHARMA in FY19? How does it compare to earlier years?

The net profit of GSK PHARMA stood at Rs 4,454 m in FY19, which was up 27.0% compared to Rs 3,507 m reported in FY18.

This compares to a net profit of Rs 3,368 m in FY17 and a net profit of Rs 3,761 m in FY16.

Over the past 5 years, GSK PHARMA net profit has grown at a CAGR of -1.7%.

What does the cash flow statement of GSK PHARMA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GSK PHARMA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 4,095 m as compared to Rs 4,728 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -1,535 m as compared to Rs -1,042 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -3,584 m as compared to Rs -3,066 m in FY18.

Here's the cash flow statement of GSK PHARMA for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations3,3761,3892,3444,7284,095
From Investments1,8004,9903,006-1,042-1,535
From Financial Activity-4,970-6,383-5,108-3,066-3,584
Net Cashflow207-4242620-1,023

What does the Key Ratio analysis of GSK PHARMA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GSK PHARMA reveals:

  • Operating profit margins witnessed a fall and down at 20.1% in FY19 as against 18.4% in FY18.
  • Net profit margins grew from 12.3% in FY18 to 14.2% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of GSK PHARMA for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)16.016.916.518.420.1
Net Profit Margin (%)14.613.312.012.314.2
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of GSK PHARMA

 

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