GSK_ Annual_Report_2021-22

33 We continued to implement automation and digitalisation initiatives, helping rationalise costs, and driving excellence every step of the way to pharmacies, healthcare professionals’ clinics and patients. 4. Opportunities, risks, concerns and threats With the pandemic came lockdowns and resulting disruptions to normal functioning of pharmaceutical businesses. Healthcare professionals continued practising at their clinics, as patient footfall through most of the year continued to remain comparatively low. This impacted prescription generation and demand for pharmaceuticals and vaccines. Adapting learnings from the pandemic, we put in place agile business continuity processes, ensuring optimum levels of production and supply chain reliability are maintained. Over the medium- to long-term, we remain positive about delivering healthy growth. Adverse regulations on product prices may impact revenues and profit margins, as we operate in a price- regulated market. We periodically assess our product portfolio to make it more diversified, with focus on high- volume growth products and operational efficiencies to control costs. With the revised National List of Essential Medicines (NLEM), expected to be released by the government later in 2022, we are engaging in various stakeholder discussions on NLEM. We continue to adopt emerging technologies and expand the use of digital tools to equip our commercial teams with capabilities to better understand the needs of healthcare professionals, through innovations such as the My Vaccination Hub web portal and the HCP Persona Tool, a digital platform which leverages emerging technologies for better understanding of behavioural trends of healthcare professionals. 5. Finance and accounts Revenue from continuing operations increased by 10% during FY 2021-22. This increase was mainly driven by growth in our General Medicine and Specialty portfolio, where we continued to gain market share in the respective categories. Our focus on key brands helped us revitalise growth, particularly in the Anti-infectives, Dermatology and pain therapeutic areas, as we notched up our strategy to reach more patients. While our Vaccines business was impacted due to low vaccination rates, many of our key brands witnessed strong growth backed by disciplined execution. We continued to maintain leadership in the private vaccines market resulting in market share gains. The revenue from operations for the year are not strictly comparable with that of the previous year, on account of the impacts of Covid-19. Profit before exceptional items and tax along with EBITDA from continuing operations, increased by 22% and 26% respectively, as compared to previous year. The tax expenses for the year have been impacted by provisions in respect to earlier years towards possible disallowances of expenses which are under litigation. Adjusting for these tax provisions for earlier years and any exceptional items, Profit After Tax has increased by 20%. During the year, your Company also completed the transfer of the trademarks pertaining to ‘Iodex’ and ‘Ostocalcium’ brands in India, along with legal, economic, commercial and marketing rights of such brands and other identified assets to GlaxoSmithKline Asia Private Limited, which form part of the profits from discontinued operations. Despite the difficult external environment, cash generation from operations remained strong during the year and was in line with the good underlying business performance. The Company focused its efforts on achieving working capital efficiencies and faster cash conversion. The Company also continued its efforts towards pursuing refunds from the tax authorities for past years. There are no loans or guarantees given, securities provided, and investments covered under Section186 of the Companies Act, 2013. The Company has not accepted any fixed deposits during the year. There was no outstanding amount towards unclaimed deposits payable to depositors, as on 31 March 2022. Further, there are no significant or material orders passed by regulators, courts or tribunals, which impact the going concern status of the Company and its future operations. There are also no material changes and commitments affecting the financial position of the Company as on the date of this report. Financial Ratios Key Financial Ratios Year ended 31-Mar-22 31-Mar-21 Profitability Ratios Operating Profit Margin (%) Profit from Operations/ Sale of Products 21.79% 19.48% Net Profit Margin (%)* Profit after Tax (excl. exceptional)/ Revenue from operations 11.85% 16.61% Return on Net Worth* Profit after Tax (excl. exceptional)/ Shareholders equity 21.71% 26.37% EBITDA % EBITDA/Revenue from operations 23.57% 21.76% Return on Capital Employed Profit before tax (excl. Exceptional) / Net Worth 43.49% 35.90%