GSK PHARMA Announces Quarterly Results (2QFY21); Net Profit Down 84.8%

Fri, 30 Oct

GSK PHARMA has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

GSK PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	8,821	6,487	8,794	35.6%	-0.3%
Other income	Rs m	156	578	89	-84.6%	-42.9%
Turnover	Rs m	8,977	7,064	8,883	25.7%	-1.0%
Expenses	Rs m	6,879	5,343	6,744	26.2%	-2.0%
Gross profit	Rs m	5,954	1,144	1,409	23.2%	-76.3%
Depreciation	Rs m	227	218	220	0.9%	-3.3%
Interest	Rs m	9	11	9	-18.5%	-4.3%
Profit before tax	Rs m	5,874	1,493	1,270	-15.0%	-78.4%
Tax	Rs m	846	383	505	31.7%	-40.3%
Profit after tax	Rs m	5,028	1,110	765	-31.1%	-84.8%
Gross profit margin	%	67.5	17.6	16.0
Effective tax rate	%	14.4	25.7	39.7
Net profit margin	%	56.0	15.7	8.6

Year-on-Year Performance:

• The company's operating income during the quarter fell 0.3% on a year-on-year (YoY) basis. The expenses were down by 2.0% YoY during the same period.
• The company's operating profit declined by 76.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 16.0% in 2QFY21 as against 67.5% in 2QFY20.
• Depreciation charges declined by 3.3% and finance costs declined by 4.3% YoY, respectively.
• Other income declined by 42.9% YoY during the quarter.
• Net profit for the quarter declined by 84.8% YoY. Net profit margins during the quarter declined from 56.0% in 2QFY20 to 8.6% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 35.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 26.2% QoQ during the same period.
• The company's operating profit increased by 23.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 16.0% in 2QFY21 as against 17.6% in 1QFY20.
• Net profit for the quarter declined by 31.1% QoQ, while net profit margins declined from 15.7% in 1QFY20 to 8.6% in 2QFY21.

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

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GSK PHARMA Share Price Performance

Over the last one year, GSK PHARMA share price has moved down from Rs 1,605.7 to Rs 1,482.0, registering a Loss of Rs 123.7 or around 7.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,213.7 (down 0.2%). Over the last one year it has moved up from 13,107.3 to 19,213.7, a gain of 6,106 points (up 46.6%).

Overall, the S&P BSE SENSEX is down 0.8% over the year.

Current Valuations

At the current price of Rs 1,482.0, the price to book value (P/BV) ratio of GSK PHARMA stands at 11.7 times.