GSK PHARMA 2022-23 Annual Report Analysis

Thu, 22 Jun

GSK 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.

GSK PHARMA Income Statement Analysis

• Operating income during the year fell 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.8% in FY23 as against 23.6% in FY22.
• Depreciation charges decreased by 3.5% and finance costs decreased by 9.3% YoY, respectively.
• Other income grew by 34.0% YoY.
• Net profit for the year grew by 58.8% YoY.
• Net profit margins during the year grew from 11.6% in FY22 to 18.8% in FY23.

GSK PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32,780	32,163	-1.9%
Other income	Rs m	758	1,015	34.0%
Total Revenues	Rs m	33,538	33,179	-1.1%
Gross profit	Rs m	7,735	7,985	3.2%
Depreciation	Rs m	682	658	-3.5%
Interest	Rs m	20	18	-9.3%
Profit before tax	Rs m	7,790	8,324	6.8%
Tax	Rs m	3,983	2,277	-42.8%
Profit after tax	Rs m	3,808	6,047	58.8%
Gross profit margin	%	23.6	24.8
Effective tax rate	%	51.1	27.4
Net profit margin	%	11.6	18.8

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GSK PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 13 billion as compared to Rs 17 billion in FY22, thereby witnessing an decrease of -22.5%.
• Current assets fell 33% and stood at Rs 25 billion, while fixed assets fell 10% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 45 billion during FY22, thereby witnessing a fall of 29%.

GSK PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	26,630	17,547	-34.1
Current Liabilities	Rs m	16,984	13,170	-22.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	45,201	31,945	-29.3
Current assets	Rs m	37,079	24,667	-33.5
Fixed Assets	Rs m	8,121	7,278	-10.4
Total Assets	Rs m	45,201	31,945	-29.3

GSK PHARMA Cash Flow Statement Analysis

• GSK PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -15 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 billion from the Rs -1 billion net cash flows seen during FY22.

GSK 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	8,107	4,879	-39.8%
Cash Flow from Investing Activities	Rs m	-4,055	8,052	-
Cash Flow from Financing Activities	Rs m	-5,242	-15,442	-
Net Cash Flow	Rs m	-1,190	-2,510	-

Current Valuations for GSK PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.7, an improvement from the EPS of Rs 22.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,440.5, stands at 40.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at 36.8 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	193.5	189.9
TTM Earnings per share	Rs	22.5	35.7
Diluted earnings per share	Rs	22.5	35.7
Price to Cash Flow	x	62.7	36.8
TTM P/E ratio	x	74.1	40.2
Price / Book Value ratio	x	10.6	14.1
Market Cap	Rs m	280,960	246,858
Dividends per share (Unadj.)	Rs	90.0	32.0

Ratio Analysis for GSK PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.2x 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 460.6x during FY23, from 391.3x 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 34.5% during FY23, from 14.3% 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 47.5% during FY23, from 29.3% 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 improved and stood at 19.0% during FY23, from 8.5% 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	2.2	1.9
Debtors’ Days	Days	229	218
Interest coverage	x	391.3	460.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	19.0
Return on equity	%	14.3	34.5
Return on capital employed	%	29.3	47.5

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 1,506.3 to Rs 1,440.5, registering a loss of Rs 65.8 or around 4.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,023.7 (down 0.4%). Over the last one year it has moved up from 21,241.4 to 25,023.7, a gain of 3,782 points (up 17.8%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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