GlaxoSmithKline Pharmaceuticals (GSK), a leading MNC in India with gross sales of Rs 1575 crore, suffered minor setback during third quarter ended September 2006 mainly on account of the divestment of the Animal Health business. The company's net profit after exceptional items declined by 7.7 per cent to Rs 285.43 crore from Rs 309.33 crore in the corresponding period of last year. Its net sales also moved down by 5.1 per cent to Rs 399.15 crore from Rs 420.66 crore. With fall in profits, its earnings per share nose-dived to Rs 33.7 from Rs 36.5 in the last period.

The company's pharmaceutical sales increased only by 2.3 per cent to Rs 369.14 crore from Rs 360.82 crore during third quarter of 2005, but sales of other business of veterinary formulations, feed supplements, etc., declined sharply by 41.6 per cent to Rs 40.06 crore from Rs 68.60 crore.

GSK's other income increased by 32 per cent to Rs 16.10 crore from Rs 12.20 crore and its interest income went up to Rs 9.26 crore from Rs 5.55 crore. With significant growth in other income and interest, its profit before taxation and exceptional items improved marginally by 2 per cent to Rs 149.56 crore from Rs 146.68 crore in the corresponding quarter of last year. The company shown exceptional items of Rs 186.36 crore during the quarter under review as compared to Rs 214.42 crore. The company sold its Animal Health business as a going concern to Virbac Animal Health India Pvt Ltd for a total consideration of Rs 207.10 crore.

GSK's net profit after exceptional items for the first nine months ended September 2006 increased slightly by 3.9 per cent to Rs 477.72 crore from Rs 459.70 crore basically due to sharp rise in other income and interest income. Its net sales increased only by 6.1 per cent during the first nine months of 2006 to Rs 1233 crore from Rs 1162 crore in the similar period of last year. Its other income for the first nine months went up by 45.6 per cent to Rs 41.71 crore and interest income moved up by 49.8 per cent to Rs 24.19 crore. The profit before taxation and exceptional items increased by 13.6 per cent to Rs 448.72 crore from Rs 395.09 crore.

The pharmaceutical sales for the first nine months of current year improved by 9.9 per cent to Rs 1109 crore, but that of other business declined by 9.5 per cent to Rs 150.80 crore from Rs 166.63 crore.

The earning per share for the first nine months of 2006 worked out to Rs 56.4 as against Rs 53.3 for the similar period of last year.