PFIZER Announces Quarterly Results (2QFY20); Net Profit Up 61.0%

Tue, 29 Oct

PFIZER has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

PFIZER Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,197	5,444	5,671	4.2%	9.1%
Other income	Rs m	371	358	448	24.9%	20.8%
Turnover	Rs m	5,568	5,802	6,118	5.4%	9.9%
Expenses	Rs m	3,900	3,782	4,029	6.5%	3.3%
Gross profit	Rs m	1,298	1,662	1,642	-1.2%	26.5%
Depreciation	Rs m	177	250	251	0.5%	41.7%
Interest	Rs m	2	22	26	21.9%	1090.9%
Profit before tax	Rs m	1,489	1,749	1,812	3.6%	21.7%
Tax	Rs m	531	621	269	-56.6%	-49.3%
Profit after tax	Rs m	958	1,128	1,543	36.7%	61.0%
Gross profit margin	%	25.0	30.5	29.0
Effective tax rate	%	35.7	35.5	14.9
Net profit margin	%	17.2	19.4	25.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 9.1% on a year-on-year (YoY) basis. The expenses were up by 3.3% YoY during the same period.
• The company's operating profit increased by 26.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 29.0% in 2QFY20 as against 25.0% in 2QFY19.
• Depreciation charges increased by 41.7% and finance costs increased by 1090.9% YoY, respectively.
• Other income increased by 20.8% YoY during the quarter.
• Net profit for the quarter increased by 61.0% YoY. Net profit margins during the quarter increased from 17.2% in 2QFY19 to 25.2% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 6.5% QoQ during the same period.
• The company's operating profit declined by 1.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 29.0% in 2QFY20 as against 30.5% in 1QFY19.
• Net profit for the quarter increased by 36.7% QoQ, while net profit margins increased from 19.4% in 1QFY19 to 25.2% in 2QFY20.

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

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PFIZER Share Price Performance

Over the last one year,PFIZER share price has moved up from Rs 2,902.6 to Rs 3,905.0, registering a Gain of Rs 1,002.5 or around 34.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,066.7 (up 0.6%). Over the last one year it has moved down from 14,460.2 to 13,066.7, a gain of 1,393 points (down 9.6%).

Overall, the S&P BSE SENSEX is up 16.0% over the year.

Current Valuations

At the current price of Rs 3,905.0, the price to earnings (P/E) ratio of PFIZER stands at 35.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.7 times.