GlaxoSmithKline net profit up 3.4% in Q2

Pharmaceuticals major GlaxoSmithKline on Thursday reported a 3.4 percent rise in its net profit to Rs 98.85 crore in the quarter ended September 30, as compared to Rs 95.55 crore in the corresponding period last year.

The company said its net profit was predominantly impacted by "mandatory price cuts as well as a decline in other income".

Sales for the quarter stood at Rs 783 crore, recording a growth of 12 percent as compared to Rs 700 crore in the year-ago period.

"The strong performance of pharmaceuticals in Q2 (July-September) highlights the momentum of the company with a volume growth of 16 percent. This translates to a diluted value growth of 13 percent caused by the recent mandated price revisions. Our key brands continue to underpin the growth performance of the company," said company's managing Director A. Vaidheesh.

During the quarter, the company launched Priorix-Tetra, a combined measles, mumps, rubella and varicella vaccine.

Firm's ongoing capital investment programme at its state-of-the art manufacturing site at Vemgal in Bengaluru "remains on track" as part of meeting the future market demand.

"The capital investments as well as a reduction in interest rates drive a reduction in Investment Income contributing to a PAT (profit after tax or net profit) growth of 3 percent Aas compared to the same prior year quarter," added Vaidheesh.

--IANS

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