Glaxo Net Slips 11% To Rs 77 Cr

Net profit at pharmaceuticals market leader Glaxo India has slipped 11 per cent to Rs 77.06 crore in 1999. A company statement said profit for the year was impacted adversely because of lower margins realised in a highly competitive market and the imposition of a protective customs duty on one of the company's major imported bulk drugs.

The board of directors has proposed a total dividend of Rs 6 per share which includes a special one-time dividend of Rs 2 per share on account of Glaxo's platinum jubilee.

Net sales during the year increased by a modest 11.5 per cent to Rs 885.5 crore. This excludes sales of the Biddle Sawyer group of companies which grew at 13 per cent. The Agrivet Farm Care division grew at 22 per cent. Glaxo's exports grew at 14 per cent.

In 1999 too, the company earned profit of Rs 21.8 crore on the sale of property compared to Rs 19.5 crore the previous year.

Other income jumped 30 per cent to Rs 45.21 crore.

Total expenditure in the year that saw Glaxo revamp its marketing structure increased 16.48 per cent to Rs 821.52 crore. Interest payments were up 14 cent to Rs 9.9 crore. Gross profit declined 9.7 per cent to Rs 121.16 crore while depreciation costs were up 14.2 per cent to Rs 16.21 crore. The company's tax provision for the year was down 16 per cent to Rs 27.89 crore. In the same period, Glaxo's sister concern Burroughs Wellcome saw a decline of 1.5 per cent in sales to Rs 200.09 crore due to a drop in export earnings. Net sales in the domestic pharmaceuticals market grew at 4.1 per cent as compared to the market growth of around 8 per cent. Net profit during the year however increased 18 per cent to Rs 29.34 crore. The board recommended a dividend of Rs 6 per share.

Other income was up 19 per cent to Rs 13.23 crore. Total expenditure actually fell 1.8 per cent to Rs 165.2 crore. Interest payments also fell 8 per cent to Rs 2.51 crore. Gross profit was up 5.3 per cent to Rs 45.61 crore. Depreciation costs fell 2.18 per cent to Rs 2.24 crore.