GSK_Annual_Report_2021

Annual Report 2020-21 35 Directors’ Report The Directors of your Company are pleased to share their Report for the year ended 31 March 2021. 1. Financial results for the year ended 31 March 2021 ` in lakhs Year ended 31 March 2021 Year ended 31 March 2020 Revenue from Operations 3193,73 3224,68 Other Income 110,19 77,56 Total Income 3303,92 3302,24 Profit before Exceptional Items and Tax 722,33 646,99 (Less) / Add: Exceptional Items (172,60) (324,49) Profit before Tax 549,73 322,50 Less: Income Tax Expenses 192,17 212,45 Profit for the year 357,56 110,05 Basic and Diluted EPS after Exceptional Items ( ` /Share) 21.11 6.50 Basic and Diluted EPS before Exceptional Items ( ` /Share) 31.32 26.69 2. Dividend Your Directors are pleased to recommend a dividend of ` 30 per equity share for the year. This dividend for the year ended 31 March 2021 is subject to the approval of shareholders at the Annual General Meeting on 27 July 2021 and will be paid on or after 27 July 2021. If approved by the shareholders at the Annual General Meeting, the dividend will absorb ` 508 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/834228/dividend- distrubtion-policy.pdf) 3. Management Discussion and Analysis (a) Finance and accounts The unprecedented adverse business environment, triggered by the COVID-19 pandemic, impacted the overall Indian Pharmaceuticals Market (IPM) during FY 2020- 21. As operations resumed after the initial lockdown, your Company sharpened its focus on investing in, and promoting its established brands. As a result of its concerted efforts, the Company not only maintained but successfully consolidated its market position during the year. Its market share in represented segments showed increase, while the key established brands quickly bounced back to double-digit growth. At ` 3,194 crores, the Revenue from operations marked a 1% decline in value terms for the year ended 31 March 2021, as compared to the previous year. Despite the detrimental impact of COVID-19 on operations for the year, your Company registered an underlying sales growth of 3%, driven by sustained focus on key brands and appropriate rationalisation of tail-end brands. Other income was higher on account of ` 71 crores in interest on refunds from the income tax authorities. Despite the unfavourable macro environment, EBITDA improved by 5% compared to previous year, mainly on account of better operational efficiencies, effective use of digital tools, focused cost reduction and renewed impetus on development of our innovative product portfolio. Profit After Tax was impacted due to exceptional charges and stood at ` 358 crores for the year. In the previous year, a strategic assessment for the Vemgal manufacturing facility was