GlaxoSmithKline Pharmaceuticals (GSK), a major MNC in India, suffered setback during the first quarter ended March 2005 due to de-stocking by the trade during the quarter and implementation of VAT. Its net profit declined by 26.7 per cent to Rs 46.91 crore from Rs 63.98 crore in the corresponding period of last year. The earning per share, after exceptional items, moved down to Rs 5.4 from Rs 7.3 in the last period.

GSK's sales declined by 23.1 per cent to Rs 276.24 crore from Rs 359.38 crore and its pharmaceuticals sales declined by 25.7 per cent to Rs 235.89 crore from Rs 317.68 crore. Further, sales from other business like veterinary formulations, feed supplements in chemicals, diagnostics, etc., also came down slightly to Rs 44.68 crore from Rs 45.88 crore. Other income, excluding interest income, went up sharply by 90 per cent to Rs 8.23 crore from Rs 4.3 crore, which assist the company push its profits. Interest income declined to Rs 5.48 crore from Rs 8.03 crore.

The company's profit before exceptional items and taxation saw a fall of 26 per cent to Rs 80.95 crore from Rs 109.43 crore. Exceptional items of Rs 7.84 in the quarter under review are mainly in respect of a claim pertaining to formulations pricing.

GSK has announced Buyback of its equity shares upto a limit not exceeding Rs 231 crore (25 per cent of the existing paid-up share capital & free reserves) at a price not exceeding Rs 800 per share from the open market.