GlaxoSmithKline Pharmaceuticals (GSK), a Rs.2,600 crore leading MNC, has posted strong growth of 37.5 per cent in net profit during the first quarter ended March 2013 to Rs.169.01 crore from Rs.122.89 crore in the corresponding period of last year basically due to lower exceptional items. The company provided Rs.1.56 crore for the exceptional items during the first quarter of 2013 as compared to Rs.92.97 crore in the last period. Its EBDITA declined by 11.5 per cent to Rs.244.58 crore from Rs.276.14 crore on account of lower growth in sales. Its net sales improved only by 1.5 per cent to Rs.632.14 crore from Rs.622.78 crore.
GSK scrip improved by 3.1 per cent during the afternoon session to Rs.2,390 on BSE and touched to its 52-weeks highest level at Rs.2,522 today.
Dr Hasit B Joshipura, managing director, said, “Growth of the core pharmaceuticals business suffered on account of supply chain constraints in parts of our Nashik facility as well as some contract manufacturer sites. Growth was also impacted on account of supply constraints around vaccines. The local supply situation is expected to normalise by the end of the second quarter.”
The raw material cost increased by 4.3 per cent to Rs.273.38 crore. Its employees cost increased by 21.7 per cent to Rs.79.08 crore from Rs.65 crore and other expenditure by 17.1 per cent to Rs.126.95 crore. Thus the lower growth in sales and higher input cost put pressure on earnings before depreciation, interest, tax and exceptional items.