GSK PHARMA Announces Quarterly Results (2QFY19); Net Profit Down 22.7%

Tue, 23 Oct

GSK PHARMA has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

GSK PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Net Sales	Rs m	8,363	7,357	8,163	11.0%	-2.4%
Other income	Rs m	96	178	148	-16.6%	54.2%
Turnover	Rs m	8,459	7,534	8,311	10.3%	-1.7%
Expenses	Rs m	6,442	5,953	6,512	9.4%	1.1%
Gross profit	Rs m	1,973	1,321	1,534	16.1%	-22.3%
Depreciation	Rs m	77	114	115	1.2%	48.8%
Interest	Rs m	0	2	2	10.0%	0.0%
Profit before tax	Rs m	1,991	1,383	1,565	13.1%	-21.4%
Tax	Rs m	688	497	557	12.0%	-19.1%
Profit after tax	Rs m	1,303	886	1,008	13.7%	-22.7%
Gross profit margin	%	23.6	18.0	18.8
Effective tax rate	%	34.6	35.9	35.6
Net profit margin	%	15.4	11.8	12.1

Year-on-Year Performance:

• The company's operating income during the quarter fell 2.4% on a year-on-year (YoY) basis. The expenses were up by 1.1% YoY during the same period.
• The company's operating profit declined by 22.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 18.8% in 2QFY19 as against 23.6% in 2QFY18.
• Depreciation charges and finance costs increased by 48.8% YoY and 0.0% YoY, respectively.
• Other income increased by 54.2% YoY during the quarter.
• Net profit for the quarter declined by 22.7% YoY. Net profit margins during the quarter declined from 15.4% in 2QFY18 to 12.1% in 2QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 11.0% on a quarter-on-quarter (QoQ) basis. The expenses were up by 9.4% QoQ during the same period.
• The company's operating profit increased by 16.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.8% in 2QFY19 as against 18.0% in 1QFY18.
• Net profit for the quarter increased by 13.7% QoQ, while net profit margins increased from 11.8% in 1QFY18 to 12.1% in 2QFY19.

To see how GSK PHARMA has performed over the last eight quarters, please visit here.

GSK PHARMA Share Price Performance

Over the last one year, GSK PHARMA share price has moved up from Rs 1,217.9 to Rs 1,355.0, registering a Gain of Rs 137.1 or around 11.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,438.9 (down 0.5%). Over the last one year it has moved up from 14,047.3 to 14,438.9, a gain of 392 points (up 2.8%).

Overall, the S&P BSE SENSEX is up 4.6% over the year.

Current Valuations

At the current price of Rs 1,355.0, the price to earnings (P/E) ratio of GSK PHARMA stands at 59.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 11.2 times.