GSK Pharma Q2 profit rises 32% to Rs130 crore
Mumbai: GlaxoSmithKline Pharmaceuticals Ltd (GSK Pharma) said Wednesday its net profit in the quarter ended September rose 31.8% from a year ago as sales rose and operating margin improved thanks to lower expenditure.
GSK Pharma, the Indian subsidiary of UK-headquartered pharma major GlaxoSmithKline Plc reported a net profit of Rs130.32 crore against Rs98.85 crore a year ago. The company’s revenue was up 4.6% on year at Rs836.26 crore, compared with Rs799.12 crore in the previous year.
The figures were higher than market expectations. According to Bloomberg estimate of five brokerages, the company’s net profit was expected at Rs107.90 crore and sales were pegged at Rs829.20 crore.
Sequentially, earnings improved significantly, recovering from impact of trade channel destocking in the June quarter ahead of the introduction of goods and services tax (GST).
“Our trade channel stock has significantly recovered during the quarter to pre-GST levels and patient needs have been successfully served during the GST transitional period. Our underlying performance, neutralising the impacts of GST and prior year disposals, is growing healthily and at least in line with market,” A. Vaidheesh, managing director, GSK Pharma said in a press release.
In the September quarter, the company’s earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 23% from 17.6% a year ago mainly on account of fall in input costs.
Total expenses during the quarter declined to Rs651.90 crore from Rs664.96 crore a year ago.
GSK Pharma also had a one-time gain of Rs5.16 crore from sale of property in the September quarter. During the quarter, the company also announced its plan to dispose of its surplus land in Thane for Rs555 crore, subject to receipt of all regulatory and statutory approvals. The proceeds and profit on disposal will be accounted for upon the signing of definitive agreement, GSK Pharma said.
Shares of GSK Pharma closed down 1% at Rs2,422.80 on the BSE, while benchmark Sensex index rose 1.3% to 33,042.50 points.