Pfizer Ltd. — Interim / Quarterly Report 2021

Nov 2, 2020

Pfizer Limited

The Capital, 1802 I 1901, Plot No. C - 70, G Block, Sandra Kurla Complex, Bandra (East), Mumbai 400 051. Tel : +91 22 6693 2000 Fax: +91 22 2654 0274

November 2, 2020

The Corporate Relationship Dept. BSE Limited 1st Floor, P.J.Towers Dalal Street, Fort Mumbai - 400 001 Scrip Code: 500680

The Manager, Listing Dept. The National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/l, G Block Bandra-Kurla Complex, Bandra (E) Mumbai - 400 051 Scrip Symbol: PFIZER

Dear Sirs,

Sub: Unaudited financial results for the quarter and half year ended September 30, 2020.

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith the unaudited financial results for the quarter and half year ended September 30, 2020, which were approved by the Board of Directors of the Company at its Meeting held today, that commenced at 11:45 a.m. and concluded at 1:45 p.m.

Also please find enclosed the Limited Review Report by our Auditors M/s. Walker Chandiok & Co LLP, in respect of the above results.

Please take the above on record.

Thanking you,

Yours truly,

For pfjzer Limited

Prajeet Nair Company Secretary

Walker Chandiok &.Co LLP

Walker Chandlok a Co LLP 21" Floor, DLF Square Jacaranda Marg, DLF Phase II Gurugram - 122 002 India

T +91124 4628099 F +91124 4628001

Independent Auditor's Review Report on Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33_of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Pfizer Limited

• 1. We have reviewed the accompanying statement of unaudited financial results ('the Statement') of Pfizer Limited ('the Company') for the quarter ended 30 September 2020 and the year to date results for the period 1 April 2020 to 30 September 2020, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
• 1. The Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34 '), prescribed under Section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act. and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. ·· CltJ.t .. ~

limlted liobllity with Identification num~~~ 2085 and IU re11storod olfiee at L-'1 Con11j1u1~t Orcus, Now 0.1111, 110001, lndla

Walker Chandiok &.Co LLP

1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 00

UDIN: 20504662AAAADL8309

Place: New Delhi Date: 2 November 2020

Pfizer Limited

The Capital, 1802 / 1901, Plot No. C - 70, G Block, Bandro Kurla Complex, Bandro (East), Mumbai 400 051. Tel : +91 22 6693 2000 Fax: +91 22 2654 0274

Statement of Unaudited Financial Result s for the Quarter and Six months ended 30 September, 2020

						Ct In crore except e1rnin1s per shue)
	Particulars	3 months ended30/09/2020Un•udltod	Preceding 3 months Corresponding lended30/06/2020Unaudited	months ended Inthe previous year30/09/2019Unaudited	Year to date fleuresfor she monthsended30/09/2020Unaudited	Year to dateflaures for sixmonths ended30/09/ 2019Unaudited	Previous yearended 31/03/ 2020Audited
	1 Income
	(a) Revenue from operations	595.41	Sl4.89	567.06	1,110.30	1,111.46	2,151.65
	{b) Other income	12.15	17.20	44.75	29.35	80.58	184.02
	Total income	607.56	532.09	611.81	1,139.65	1,192.04	2,335.67
	2 Expenses
	(a) Cost of materials consumed	83.03	73.30	69.56	156.33	150.15	345.21
	(b) Purchases of stock·in·trade	100.12	121.96	95.28	222.08	181.60	483.81
	(c) Changes in inventory of finished goods, work·in·progress and
	stock·in·trade	28.66	( 17.67)	44.59	10.99	68.70	(36.62)
	(d) Employee benefits expense	86.21	85.90	86.24	172.11	173.88	364.51
	(e) Finance costs	4.71	3.0 1	2.62	7.72	4.77	10.85
	(f) Depreciation and amortization expense	27.73	27.14	25.13	54.87	50.13	103.24
	(g) Other expenses	94.07	65.11	107.21	159.18	206.72	422.18
	Total expenses	424.53	358.75	430.63	783.28	835.95	1,693.18
	3 Profit before tax (1 · 2)	183.03	173.34	181.18	356.37	356.09	642.49
	4 Tax expense
	(a) Current tax	56.61	50.04	33.21	106.65	103.72	177.70
	(b) Deferred tax	(4.95)	(1.lS)	(6.28)	(6.10)	(14.69)	0.16
	(c) Prior year tax reversal						(44.50)
	5 Net profit for the period I year (3 • 4)	131.37	124.45	154.25	255.82	267.06	509.13
	6 Other comprehensive income
	(a) Items that will not be reclassified subsequently to profit or loss	(2.93)	(2.94)	(1.67)	(5.87)	(3.34)	(11.94)
	(b) Income tax related to items that will not be reclassified to profit or loss	0.74	0.74	0.26	1.48	0.84	3.01
	Other comprehensive income, net of taxes	(2.19)	(2.20)	(1.41)	(4.39)	(2.50)	(8.93)
	7 Total comprehensive income for the period / year (5 + 6)	129.18	122.25	152.84	251 .43	264.56	500.20
	8 Paid-up equity share capital (Face value per share ~10)	45.75	45.75	45.75	45.75	45.75	45.75
	9 Other equity						3,349.74
	10 Earnings per share • Basic and Diluted (of ~10/- each) (not annualised)Computed on the basis of net profit for the period I year	28.71	27.20	33.72	55.92	58.38	111.28

CIN : L24231MH1950PLC008311 ~ contactusindia@pfizer.com

e1 www.pfizerindia.com

in crore)

Particulars30 Se tember 202031 March 2020AuditedUnauditedASSETSNon-current assets208.94Property, plant and equipment0.49Capital work-in-progress30. 26Investment property527.49Goodwill173.96Other intangible assetsFinancial assets0.00Investments•32.36Loans145.10Other non-current assets8.20Deferred tax assets (net)162.95Income tax receivable (net)1,289.75Total non-current assetsCurrent assets415.14InventoriesFinancial asset s157.54Trade receivables57.12Cash and cash equivalent s936.97Bank Balance other than cash and cash equivalents7.50Loans9.08Other financial assets148.22Other current assets35.18Assets held for sale1,766.75Total current assets3,056.50TOTAL ASSETSEQUITY AND LIABILITIESEquity45.75Equity share capital2,096.30Other equity2,142.05Total equityLiabilitiesNon current liabilitiesFinancial liabilities90.33Other financial liabilities58.00Provisions148.33Total non-current liabilitiesCurrent liabilitiesFinancial liabilities2.50BorrowingsTrade payables18.78Due to micro enterprises and small enterprises301.44Due to others110.30Other financial liabilities225.36Other current liabilities61.74Provisions46.00Current tax liabilities (net)766.12Total current liabilit ies914.45Total liabilitiesTOTAL EQUITY AND LIABILITIES	As at	As at
3.52
		214.52
		0.76
		30.95
		527.49
		199.90
		0.00
		31.90
		141.69
		0.62
		209.32
		1,357.15
		430.59
		172.03
		1,763.79
		456.08
		21.31
		165.75
		35 .18
		3,048.25
		4,405.40
		45. 75
		3,349.74
		3,395.49
		88.68
		47.87
		136.55
		2.50
		9.33
		417.45
		118.06
		222.31
		57.71
		46.00
		873.36
		1,009.91
		4,405.40

•Amount low~ one lakh

II

Statement of Unaudited Cash Flows for the Six months e nded 30 September 2020

		in crore)
Particulars	Year to date figures for six Year to date figures formonths ended30/09/2020	six months ended30/09/2019
	Unaudited	Unaudited
Cash from operating activities
Profit before tax	356.37	356.09
Adjustments to reconcile profit before tax ta net cash used in operating activities
Depreciation and amortization expenses	54.87	50.13
Interest on deposits with banks and others	(20.63)	(65.62)
Provisions no longer required written back	(1.21)	(11.20)
(Reversal)/Provision for expected credit loss	(0.50)	0.46
Provision for doubtful loans (deposits)	0.08
(Profit) on sale/disposal of Property plant & equipment (net)		(0.03)
Unrealised foreign exchange gain	(0.84)
Employee stock option expenses	4.80	4.26
Rental income	(3.20)	(3.20)
Interest expense	7.72	4.77
Sale of rights and interest in brands	(3.25)
Gain on early termination of lease	(0.78)
Operating profit before working capital adjustments	393.43	335.66
Working capital adjustments
Decrease in inventories	15.45	70.09
Decrease/ (Increase) in trade receivables	14.99	(36.28)
Decrease/ (Increase) in other current and non current assets	11.44	(14.47)
(Decrease) in trade payables	(104.88)	(47.40)
(Decrease) in current and non current liabilities	(6.65)	(6.93)
lncrease/(Decrease) in provisions	8.28	(2.40)
Cash generated from operations	332.06	298.27
	(60.27)	(103.73)
Income tax paidNet cash generated from operating activities (A)	271.79	194.54
Cash from investing activities
Purchase of property, plant and equipment	(10.83)	(3.86)
Additions to asset held for sale		(21.49)
Proceeds from sale of property, plant and equipment		0.03
Balance other than cash and cash equivalents	(476.63)	(159.98)
Rent received	3.52	3.22
Interest received	29.96	67.16
Net cash used in from investing activities (B)	(453.98)	(114.92)
Cash from financing activities
Payment of Lease liablities	(10.54)	(4.43)
Dividend paid	(1,513.94)	(102.96)
Tax paid on dividend		(21.16)
Net cash used in financing activities (C)	{1,524.48)	(128.55)
Net (Decrease) in cash and cash equivalents (A+B+C)	(1,706.67)	(48.93)
Cash and cash equivalents at the beginning of the period		73.81
Cash and cash equivalents at the end of t he period		24.88

NOTES:

• 1. The above results were reviewed and recommended by the Audit Committee, for approval by the Board, at its Meeting held on 02 November 2020 and were approved and taken on record at the Meeting of the Board of Directors of the Company held on that date.
• 1. The financial results of the Company have been prepared in accordance with Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (As amended) and SEBI circular dated July 5, 2016.
• 1. The financial results for quarter and half year ended 30 September 2020 have been subjected to limited review by the statutory auditors of the Company. The limited review report does not contain any modifications. The limited review report will be filed with the Stock Exchanges and will also be available on the Company's website - www.pfizerindia.com
• 1. The Company has only one segment which is 'Pharmaceuticals'. Therefore, disclosure relating to segments is not applicable and accordingly not made.
• 1. During the quarter ended 30 September 2019, the Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company had recognized Provision for Income Tax for the six months ended September 30, 2019 and re-measured its Deferred tax assets basis the rate prescribed in the said section. The impact of this change related to the quarter ended 30 June 2019 was recognized in the quarter ended 30 September 2019.

I

02 November 2020