Glaxo India reported virtually flat top line sales for the Sep-20 quarter at Rs879.32cr. The operating profits for the quarter ended Sep-20 was up 6.77% at Rs183cr on a yoy basis but it had doubled on a sequential basis. Net profit was down 85% but that was due to exceptional items.
In the Sep-19 quarter, Glaxo booked an exceptional one-time credit of Rs401cr, which led to this anomaly. That is why the operating profit growth is more indicative. Even on sequential basis, the net profits are down but that is more due to a spurt in other income in the Jun-20 quarter. Removed for anomalies, the Sep-20 third quarter has done very well.
Financial highlights for Sep-20 compared yoy and sequentially
|
Particulars |
Sep-20 Quarter |
Growth (yoy) |
Growth (qoq) |
|
Total Revenues |
Rs879.32cr |
-0.31% |
+35.57% |
|
Operating Profit |
Rs182.9cr |
+6.77% |
+98.16% |
|
Net Profits |
Rs76.47cr |
-84.77% |
-31.00% |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs4.51 |
Rs29.68 |
Rs6.54 |
|
Operating Margins |
20.80% |
19.42% |
14.23% |
|
Net Profit Margin |
8.70% |
57.00% |
17.09% |
Key takeaways from the Sep-20 quarter results
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The exceptional profit of Rs401cr booked in the Sep-19 quarter was largely on account of profit from the sale of land, which was booked net of all costs and other impairment of losses. That actually distorted the yoy numbers for the Sep-20 quarter.
-
Glaxo has seen a slowdown across certain therapeutic areas but the impact has not been too substantial either on the top line or the bottom line. The slowdown is visible more in the non-essential and the anti-infectives portfolio.
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