GlaxoSmithkline Pharmaceuticals Ltd has posted a net profit of Rs 87.56 crore for the half yearly ended June 30, 2003. Profit after tax and before exceptional items recorded growth of 31 per cent. Demand generation for power brands remained strong as in the first quarter of 2003, resulting higher sales of the profitable brands and improved margins.

The company recorded sales growth of 5.6 per cent for its domestic pharmaceuticals business (excluding the exports, animal health and fine chemicals business) during the half year ended June 30, 2003, against the backdrop of a reported market growth of 2.5 per cent. Exports sales during the half year declined by 47 per cent mainly due to the discontinuation of Ranitidine exports post the Ankleshwar site closure, this has impacted the company’s overall sales performance during the half year ended 30th June 2003.

Exceptional items for the six months ended June 30, 2003 relates to profit on sale of the Bangalore office property amounting to 1229 lakh. The figures of the previous six months ended June 30, 2002 relate to costs of staff separation and retirement benefit as well as non-recurring expenses for integration/rationalization initiatives aggregating to Rs. 510 lakh which, net of tax, amounts to Rs 323 lakh.