GLENMARK PHARMA 2023-24 Annual Report Analysis

Mon, 9 Sep

GLENMARK PHARMA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GLENMARK PHARMA Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY24 as against 7.5% in FY23.
• Depreciation charges increased by 2.2% and finance costs increased by 47.8% YoY, respectively.
• Other income grew by 190.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.8% in FY23 to 15.5% in FY24.

GLENMARK PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	115,832	118,131	2.0%
Other income	Rs m	2,889	8,400	190.8%
Total Revenues	Rs m	118,721	126,531	6.6%
Gross profit	Rs m	8,692	2,944	-66.1%
Depreciation	Rs m	5,692	5,819	2.2%
Interest	Rs m	3,490	5,160	47.8%
Profit before tax	Rs m	2,398	365	-84.8%
Tax	Rs m	3,294	18,673	466.9%
Profit after tax	Rs m	-896	-18,309	NA
Gross profit margin	%	7.5	2.5
Effective tax rate	%	137.3	5,116.7
Net profit margin	%	-0.8	-15.5

Don't Miss: Key Information for Long-term Investors

GLENMARK PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 58 billion as compared to Rs 45 billion in FY23, thereby witnessing an increase of 28.0%.
• Current assets fell 12% and stood at Rs 74 billion, while fixed assets fell 14% and stood at Rs 59 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 133 billion as against Rs 176 billion during FY23, thereby witnessing a fall of 24%.

GLENMARK PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	94,563	78,297	-17.2
Current Liabilities	Rs m	45,462	58,186	28.0
Long-term Debt	Rs m	38,521	0	-100.0
Total Liabilities	Rs m	175,658	133,089	-24.2
Current assets	Rs m	84,236	74,281	-11.8
Fixed Assets	Rs m	68,402	58,808	-14.0
Total Assets	Rs m	175,658	133,089	-24.2

GLENMARK PHARMA Cash Flow Statement Analysis

• GLENMARK PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 46 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -39 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 325 million net cash flows seen during FY23.

GLENMARK PHARMA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	6,254	-2,654	-
Cash Flow from Investing Activities	Rs m	-5,285	45,609	-
Cash Flow from Financing Activities	Rs m	-775	-39,061	-
Net Cash Flow	Rs m	325	2,152	562.3%

Current Valuations for GLENMARK PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -64.9, an decline from the EPS of Rs -3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,713.2, stands at -31.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at -16.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	410.5	418.6
TTM Earnings per share	Rs	-3.2	-64.9
Diluted earnings per share	Rs	-3.2	-64.9
Price to Cash Flow	x	27.4	-16.3
TTM P/E ratio	x	104.1	-31.6
Price / Book Value ratio	x	1.2	2.6
Market Cap	Rs m	117,953	202,964
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for GLENMARK PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.9x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.1x during FY24, from 1.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -23.4% during FY24, from -0.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 7.1% during FY24, from 4.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -9.9% during FY24, from 1.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.9	1.3
Debtors’ Days	Days	115	57
Interest coverage	x	1.7	1.1
Debt to equity ratio	x	0.4	0.0
Return on assets	%	1.5	-9.9
Return on equity	%	-0.9	-23.4
Return on capital employed	%	4.4	7.1

To see how GLENMARK PHARMA has performed over the last 5 years, please visit here.

GLENMARK PHARMA Share Price Performance

Over the last one year, GLENMARK PHARMA share price has moved up from Rs 776.5 to Rs 1,713.2, registering a gain of Rs 936.7 or around 120.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,412.4 (down 0.1%). Over the last one year it has moved up from 28,280.7 to 43,412.4, a gain of 15,132 points (up 53.5%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

(To know more, check out historical annual results for GLENMARK PHARMA and quarterly results for GLENMARK PHARMA)