PROCTER & GAMBLE HEALTH Announces Quarterly Results (1QFY20); Net Profit Up 34.3%

Tue, 13 Aug

PROCTER & GAMBLE HEALTH has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

PROCTER & GAMBLE HEALTH Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	2,203	2,310	2,336	1.1%	6.1%
Other income	Rs m	58	177	175	-1.2%	202.9%
Turnover	Rs m	2,261	2,487	2,511	1.0%	11.1%
Expenses	Rs m	1,695	1,809	1,791	-1.0%	5.7%
Gross profit	Rs m	508	501	545	8.8%	7.3%
Depreciation	Rs m	49	43	45	4.6%	-7.7%
Interest	Rs m	0	0	0	0.0%	0.0%
Profit before tax	Rs m	517	635	675	6.3%	30.5%
Tax	Rs m	189	228	234	2.8%	23.9%
Profit after tax	Rs m	328	407	441	8.3%	34.3%
Gross profit margin	%	23.1	21.7	23.3
Effective tax rate	%	36.5	35.9	34.7
Net profit margin	%	14.5	16.4	17.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 6.1% on a year-on-year (YoY) basis. The expenses were up by 5.7% YoY during the same period.
• The company's operating profit increased by 7.3% YoY during the quarter. Consequently, operating profit margins remained same and stood at 23.3% in 1QFY20.
• Depreciation charges declined by 7.7% and finance costs increased by 0.0% YoY, respectively.
• Other income increased by 202.9% YoY during the quarter.
• Net profit for the quarter increased by 34.3% YoY. Net profit margins during the quarter increased from 14.5% in 1QFY19 to 17.6% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.0% QoQ during the same period.
• The company's operating profit increased by 8.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.3% in 1QFY20 as against 21.7% in 4QFY19.
• Net profit for the quarter increased by 8.3% QoQ, while net profit margins increased from 16.4% in 4QFY19 to 17.6% in 1QFY20.

To see how PROCTER & GAMBLE HEALTH has performed over the last eight quarters,please visit here.

PROCTER & GAMBLE HEALTH Share Price Performance

Over the last one year,PROCTER & GAMBLE HEALTH share price has moved up from Rs 2,864.9 to Rs 4,642.8, registering a Gain of Rs 1,777.9 or around 62.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,744.3 (up 0.4%). Over the last one year it has moved down from 14,332.1 to 12,744.3, a gain of 1,588 points (down 11.1%).

Overall, the S&P BSE SENSEX is down 1.3% over the year.

Current Valuations

At the current price of Rs 4,642.8, the price to earnings (P/E) ratio of PROCTER & GAMBLE HEALTH stands at 55.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.0 times.