GlaxoSmithKline Pharmaceuticals (GSK), the merged entity of SmithKline Beecham Pharmaceuticals with erstwhile Glaxo witnessed a quantum jump in net profit during the third quarter of 2002. On a net sales increase of just 6.5 per cent at Rs 324.55 crore, the net profit (net of exceptional items) surged 54.8 per cent to Rs 37.38 crore during Q3.

During the nine months ended September 2002, the company's net sales at Rs 913.76 crore had improved 11.7 per cent while its net profit jacked up 19.2 per cent to Rs 100.63 crore. The net profit has actually outstripped the full year (last year) profit of Rs 75.32 crore. The pharmaceutical business, which accounted for nearly 80 per cent of the total, had shown a healthy growth of 15.3 per cent. According to the company, it has identified its focus products, which are backed by improved marketing and promotion support. The profit before tax and exceptional items had actually recorded a growth of 68 per cent. A sharp focus on profitable pharmaceutical brands, procurement and manufacturing efficiencies, tight control on expenses, synergies from integration and headcount rationalization helped the company to improve profit. The exceptional items for the nine months relate to the costs of staff separation and retirement benefits as well as non-recurring expenses aggregating Rs 8.32 crore (previous year Rs 18.18 crore). The figures for previous nine months also include profit on sale of property worth Rs 39.35 crore. The previous periods figures have been regrouped to reflect the merger of SmithKline Beecham with the company.

The shareholders of the company have approved the composite scheme of Arrangement for the demerger of the marketing undertaking of Meghdoot Chemicals into the company and the amalgamation of Croydon Chemical Works with the company.