PFIZER Announces Quarterly Results (2QFY21); Net Profit Down 14.8%

Wed, 4 Nov

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

PFIZER Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	5,671	5,149	5,954	15.6%	5.0%
Other income	Rs m	448	172	122	-29.4%	-72.8%
Turnover	Rs m	6,118	5,321	6,076	14.2%	-0.7%
Expenses	Rs m	4,029	3,286	3,921	19.3%	-2.7%
Gross profit	Rs m	1,642	1,863	2,033	9.1%	23.8%
Depreciation	Rs m	251	271	277	2.2%	10.3%
Interest	Rs m	26	30	47	56.5%	79.8%
Profit before tax	Rs m	1,812	1,733	1,830	5.6%	1.0%
Tax	Rs m	269	489	517	5.7%	91.8%
Profit after tax	Rs m	1,543	1,245	1,314	5.6%	-14.8%
Gross profit margin	%	29.0	36.2	34.1
Effective tax rate	%	14.9	28.2	28.2
Net profit margin	%	25.2	23.4	21.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 5.0% on a year-on-year (YoY) basis. The expenses were down by 2.7% YoY during the same period.
• The company's operating profit increased by 23.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 34.1% in 2QFY21 as against 29.0% in 2QFY20.
• Depreciation charges increased by 10.3% and finance costs increased by 79.8% YoY, respectively.
• Other income declined by 72.8% YoY during the quarter.
• Net profit for the quarter declined by 14.8% YoY. Net profit margins during the quarter declined from 25.2% in 2QFY20 to 21.6% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 15.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 19.3% QoQ during the same period.
• The company's operating profit increased by 9.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 34.1% in 2QFY21 as against 36.2% in 1QFY20.
• Net profit for the quarter increased by 5.6% QoQ, while net profit margins declined from 23.4% in 1QFY20 to 21.6% in 2QFY21.

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 4,072.9 to Rs 4,915.0, registering a Gain of Rs 842.1 or around 20.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,668.2 (up 1.7%). Over the last one year it has moved up from 13,321.1 to 19,668.2, a gain of 6,347 points (up 47.6%).

Overall, the S&P BSE SENSEX is up 0.4% over the year.

Current Valuations

At the current price of Rs 4,915.0, the price to earnings (P/E) ratio of PFIZER stands at 45.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.5 times.