NOVARTIS Announces Quarterly Results (4QFY19); Net Profit Down 26.2%
Thu, 30 May

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

NOVARTIS Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-18*
3
Dec-18*
3
Mar-19*
QoQ ChangeYoY Change
Net SalesRs m1,2531,3561,104-18.6%-11.9%
Other incomeRs m1,09611513417.1%-87.7%
TurnoverRs m2,3491,4711,238-15.8%-47.3%
ExpensesRs m1,4721,221905-25.9%-38.5%
Gross profitRs m-21913519947.1%
DepreciationRs m6109-4.2%42.2%
InterestRs m5100-100.0%-100.0%
Profit before taxRs m81924032435.0%-60.5%
TaxRs m55511112915.6%-76.8%
Profit after taxRs m26512919551.7%-26.2%
Gross profit margin%-17.510.018.0
Effective tax rate%67.746.439.7
Net profit margin%11.38.715.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 11.9% on a year-on-year (YoY) basis. The expenses were down by 38.5% YoY during the same period.
  • The company's operating profit declined by 190.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.0% in 4QFY19 as against 17.5% in 4QFY18.
  • Depreciation charges increased by 42.2% and finance costs declined by 100.0% YoY, respectively.
  • Other income declined by 87.7% YoY during the quarter.
  • Net profit for the quarter declined by 26.2% YoY. Net profit margins during the quarter increased from 11.3% in 4QFY18 to 15.8% in 4QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 18.6% on a quarter-on-quarter (QoQ) basis. The expenses were down by 25.9% QoQ during the same period.
  • The company's operating profit increased by 47.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.0% in 4QFY19 as against 10.0% in 3QFY18.
  • Net profit for the quarter increased by 51.7% QoQ, while net profit margins increased from 8.8% in 3QFY18 to 15.8% in 4QFY19.

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

NOVARTIS Share Price Performance

Over the last one year, NOVARTIS share price has moved up from Rs 664.2 to Rs 702.3, registering a Gain of Rs 38.2 or around 5.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,339.1 (up 0.2%). Over the last one year it has moved up from 13,111.9 to 13,339.1, a gain of 227 points (up 1.7%).

Overall, the S&P BSE SENSEX is up 13.6% over the year.

Current Valuations

At the current price of Rs 702.3, the price to earnings (P/E) ratio of NOVARTIS stands at 455.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 32.1 times.