Glaxo Net Sales Up 15%

Glaxo India has posted net sales of Rs 645 crore for full year 1996 and a net profit of Rs 48 crore. The drug major had an 18-month accounting period in 1995, where it recorded sales of Rs 907.14 crore and a net profit of Rs 185.09 crore. The net profit also includes profit of Rs 173.58 crore from the sale of the family products division.

Annualised 1995 figures show the company recorded sales Rs 561.04 crore and gross profits of Rs 72.24 crore.

In 1996, Glaxo posted a 15 per cent rise in net sales to Rs 645 crore. Gross profit rose 31 per cent from annualised Rs 72.24 crore to Rs 95.06 crore in 1996. Other income, this year, dropped 20 per cent from annualised Rs 39.63 crore in 1995 to Rs 31.48 crore last year. Similarly, the profit before extraordinary items has gone up by 38 per cent from Rs 60.17 crore to Rs 83.05 crore this year.

The company's EPS has risen from Rs 5.91 last year (annualised) to Rs 8.11. A final dividend of 25 per cent has been declared, making a total dividend of 40 per cent for 1996 after including the 15 per cent interim dividend.

Interest costs have slid from Rs 9.57 crore to Rs 8.73 crore, mainly due to the cash inflow from the sale of the foods division to Heinz India.

Although actual net profit falls short of the consensus net profit figure projected, most analysts seem to be satisfied with the results.

Tarun Jetli of James Capel says the company posted top line growth despite labour problems at its Worli and Thane plants, mainly because 80 to 85 per cent of its formulations are produced at its Nashik unit.

Besides, it benefited from several of its products like Phexin, Betnosol, Betnovate and Efcorlin coming out of the DPCO ambit.