NOVARTIS Announces Quarterly Results (4QFY18); Net Profit Up 809.6%
Fri, 20 Jul

NOVARTIS has announced its results for the quarter ended March 2018. Here is a detailed performance review of the same:

NOVARTIS Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-17*
3
Dec-17*
3
Mar-18*
QoQ ChangeYoY Change
Net SalesRs m1,4551,5611,253-19.7%-13.9%
Other incomeRs m1481451,096658.5%640.0%
TurnoverRs m1,6031,7062,34937.7%46.6%
ExpensesRs m1,5141,4431,4722.0%-2.8%
Gross profitRs m-59118-219-285.3%
DepreciationRs m135618.5%-52.2%
InterestRs m43511506.3%1217.9%
Profit before taxRs m72254819222.4%1044.1%
TaxRs m4367555731.3%1204.7%
Profit after taxRs m2918726541.2%809.6%
Gross profit margin%-4.17.6-17.5
Effective tax rate%59.426.267.7
Net profit margin%1.811.011.3
* 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 13.9% on a year-on-year (YoY) basis. The expenses were down by 2.8% YoY during the same period.
  • The company's operating profit increased by 269.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 17.5% in 4QFY18 as against 4.1% in 4QFY17.
  • Depreciation charges and finance costs declined by 52.2% YoY and 1217.9% YoY, respectively.
  • Other income increased by 640.0% YoY during the quarter.
  • Net profit for the quarter increased by 809.6% YoY. Net profit margins during the quarter increased from 1.8% in 4QFY17 to 11.3% in 4QFY18.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 19.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 2.0% QoQ during the same period.
  • The company's operating profit declined by 285.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 17.5% in 4QFY18 as against 7.6% in 3QFY17.
  • Net profit for the quarter increased by 41.2% QoQ, while net profit margins same from 11.0% in 3QFY17 to 11.3% in 4QFY18.

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 637.8 to Rs 625.0, registering a Loss of Rs -12.9 or around 2.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,620.9 (up 0.8%). Over the last one year it has moved down from 14,918.1 to 13,620.9, a gain of -1,297.3 points (down 8.7%).

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

Current Valuations

At the current price of Rs 625.0, the price to earnings (P/E) ratio of NOVARTIS stands at 267.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 28.6 times.