GlaxoSmithKline Pharma (GSK), a leading multinational pharma company, has posted lower net profit of Rs.98.29 crore during the second quarter ended June 2014 from Rs.115.04 crore in the corresponding period of last year. Its net sales improved marginally by 2.6 per cent to Rs.654.96 crore from Rs.636.86 crore. With lower profits, EPS declined to Rs.11.6 from Rs.13.5 in the last period.
GSK's net sales of the pharmaceutical business improved by 3.7 per cent mainly due to effect of differential pricing cuts due to the Price Control Order. Exceptional income of Rs.20.07 crore was registered in the quarter ended June 2013.
GSK scrip opened at Rs.2505 on BSE in the morning session, but declined sharply and touched to intra- day low at Rs.2400 after the announcement of financial results. The scrip was quoted at Rs.2488 in the afternoon session.
For the first half ended June 2014, GSK's net sales declined by 1.1 per cent to Rs.1245.81 crore from Rs.1269 crore in the same period of last year. Its net profit declined sharply by 31.4 per cent to Rs.194.83 crore from Rs.284.05 crore. The EPS declined to Rs.23 from Rs.33.5 in the last period. Its other income declined to Rs.84.72 crore from Rs.113.81 crore.