GlaxoSmithKline Pharmaceuticals (GSK), a leading MNC in India, has suffered heavy setback during the third quarter ended September 2008 mainly due to exceptional items in the previous period. The company's net profit declined by 47 per cent to Rs 131.97 crore from Rs 249.01 crore and its earnings per share, for the quarter, nosedived to Rs 15.6 from Rs 29.4 in the last period. The company's net sales increased by 8.6 per cent to Rs 456.95 crore from Rs 420.80 crore. Profit before tax and exceptional items increased by 18.6 per cent to Rs 197.77 crore from Rs 166.73 crore.

The company has shown Rs 139.91 crore as exceptional item during the last period on account of sale of its fine chemicals business.

For the nine months ended September 2008, GSK's net sales increased by 4.4 per cent to Rs 1291.96 crore from Rs 1237.87 crore in the similar period of last year. However, its net profit moved down by 19.4 per cent to Rs 368.10 crore from Rs 456.76 crore. The company's profit before tax and exceptional items improved by 14.1 per cent to Rs 553.48 crore from Rs 485.11 crore.

Commenting on the performance, D Hasit B Joshipura, managing director, said, "The company's major products in the priority range, including vaccines, registered a strong double digit growth. Despite inflationary pressures in raw material and energy costs, gross margin improved due to a better product mix and higher volumes which, coupled with control on expenses, contributed to the significant growth in products during the quarter."

GSK launched the anti-hypertensive drug Benitec and its combination product Benitec H, which were in-licensed from Daiichi Sankyo earlier this year. Other products/vaccines launched in the year have also contributed to the growth.