GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 30 The Directors of your Company are pleased to share their Report for the year ended 31 March 2022. 1. Financial Results for the year ended 31 March 2022 ( ` in crores) Year 2021-22 2020-21 Continuing Operations: Revenue from operations 3218 2921 Other income 76 110 Total income 3294 3031 Profit before exceptional items and tax 762 626 Add / (Less): Exceptional items 12 (173) Profit before tax 774 453 Less: Income tax expenses (397) (166) Profit for the year from continuing operations 377 287 Discontinued Operations: Profit before tax from discontinued operations 1708 97 Less: Tax expense of discontinued operations (394) (26) Profit from discontinued operations after tax 1314 71 Profit for the year 1691 358 Directors’ Report 2. Dividend Your Directors are pleased to recommend a dividend of ` 90 per equity share (including special dividend of ` 60) for the year. This dividend for the year ended 31 March 2022 is subject to the approval of Members at the Annual General Meeting on 26 July 2022 and will be paid on or after 27 July 2022. If approved by the Members at the Annual General Meeting, the dividend will absorb ` 1525 crores. The Board of Directors of your Company had approved the Dividend Distribution Policy on 27 October 2016, and it is available on the Company’s website ( https://india-pharma.gsk.com/media/6486/dividend- distrubtion-policy.pdf ) 3. Management Discussion and Analysis 1. Economy review Indian economy and outlook The Indian economy recovered from the pandemic- induced environment experienced in the previous year, witnessing sequential improvement as the year progressed. According to the Indian Economic Survey 2021-22 issued in February 2022, India’s GDP is estimated to have grown 9.2% in FY 2021-22 after contracting 7.3% in the previous year. The rapid roll-out of vaccination drives along with fiscal and monetary policy measures have supported this economic recovery. The geopolitical fallouts of recent times have further aggravated inflationary pressures and policy makers the world over will be on a tight balancing act. As a result, businesses will have to address supply chain disruptions and inflationary concerns through novel approaches. 2. Industry review and outlook The Indian pharmaceutical industry is the third largest in the world by volume, making significant contributions to global health. According to ICRA, the pharmaceutical industry is expected to grow between 9-11% in 2021-22. The industry demonstrated commitment during the pandemic, by not only providing adequate medicines, but also contributing significantly to other areas such as sanitation, preventive healthcare and quarantine facilities. The industry was able to overcome the challenges posed by the pandemic by carefully evaluating the potential use of available drugs. According to the Indian Economic Survey 2021-22, the domestic market is expected to grow 3x in the next decade. India’s domestic pharmaceutical market stood at $ 42 billion in 2021 and is likely to grow to $ 65 billion by 2024. The Indian pharma industry has been a key contributor to improving the country’s healthcare and economic outcomes. The pandemic has enhanced several opportunities and challenges for the industry. To emerge as a winner in the post-pandemic world, the industry needs to continue building on its strength while enhancing focus towards innovation. New capabilities need to be introduced across business functions to improve skills and to enhance the value