GlaxoSmithKline Pharmaceuticals Ltd (GSK), a Rs 1200-crore pharma MNC, has put up a good show during the first quarter ended March 2004 on account of strong growth of its power brands. Its net profit (before exceptional items) went up by 60 per cent to Rs 56.08 crore from Rs 35.09 crore in the corresponding period of last year. The exceptional items of Rs 5.89 crore were mainly related to the cost of separation and retirement benefits to management staff at its Bangalore factory.

The company’s net sales increased by 17.5 per cent to Rs 332.31 crore from Rs 282.86 crore. The sales growth is not likely to be sustained in the next quarter as in the last year. The sales were down due to confusion prevailing around the implementation of VAT and the transport strike. The revenue from pharmaceuticals went up by 21.4 per cent to Rs 292.07 crore in the first quarter from Rs 240.53 crore in the corresponding period of last year and that from other businesses amounted to Rs 47.78 crore as against 47.15 crore. Other business comprising of veterinary formulations, feed supplements, fine chemicals, diagnostics, lab equipments and exports mainly relating to pharmaceuticals.

The profit before interest and tax from pharma business went up sharply by 70 per cent to Rs 80.09 crore from Rs 47.18 crore.