GlaxoSmithKline Pharmaceuticals (GSK), a leading MNC in India, has reported satisfactory performance during the fourth quarter ended December 2007. Its net profit after exceptional items increased by 19.3 per cent to Rs 80.90 crore from Rs 67.79 crore in the corresponding period of last year. Its net sales increased by 5.9 per cent to Rs 339.27 crore from Rs 320.27 crore in the previous year. The growth in sales and profits was primarily driven by sales of priority products which registered a double digit growth, improvement in the gross margin and expense control. The company's other income moved up by 29.4 per cent to Rs 28.67 crore from Rs 22.16 crore.
The figures are not strictly comparable in view of the sale of the Fine Chemicals business on September 30, 2007 and of the Animal Health business on July 31, 2006.
The board of directors have recommended a dividend of Rs 18 per equity share and a special additional dividend of Rs 18 per share, making a total dividend of 360 per cent for the year 2007.
Commenting on the performance, Dr Hasit B Joshipura, managing director, said, "The company has shown double digit, market competitive growth both for the quarter as well as for the year. New products launched in 2007 reflect our focus on high growth therapeutic segments and our launches during the year included Arixtra, a product in the anti-thrombosis segment and Carzec in the cardiology segment".
For the full year ended December 2007, GSK's net profit after exceptional items declined by 1.4 per cent to Rs 537.66 crore from Rs 545.51 crore in the previous year. Its net sales increased marginally by 1.6 per cent to Rs 1577.14 crore from Rs 1552.92 crore. The profit before tax and exceptional items improved by 9.9 per cent to Rs 611.18 crore from Rs 555.95 crore.
The company sold its Fine Chemicals business as a going concern to Thermo Electron LLS India Pvt Ltd for a total consideration of Rs 240 crore during September 2007. It has shown exceptional items (net of tax) amounting to Rs 137.94 crore during the year ended December 2007. Last year the same was Rs 183.79 crore on account of sale of its Animal Health business.