GSK net up 79% to Rs 42.38 cr

Net sales grew 15.08%.

GlaxoSmithKline Pharmaceuticals reported 79.34 per cent rise in net profit at Rs 42.38 crore for the quarter ended December 31, 2005 against Rs 23.63 crore for the corresponding period in the previous year.

Earnings per share increased to Rs 59.1 for the year ended December 31, 2005 against Rs 38.7 in the previous year.

Net sales increased to Rs 344.39 crore in the quarter against Rs 299.24 crore in the corresponding period of the last year.

The company has marginally improved its dividend payout to Rs 14 per equity share for the year (Rs 13). If approved by shareholders, the payout would absorb Rs 135.2 crore inclusive of dividend distribution tax.

The company has reported 50.73 per cent rise in net profit at Rs 502.08 crore for the year ended December 31, 2005 against Rs 333.09 crore for the year ended December 31, 2004.

Total income (net of excise) has increased to Rs 1,550.94 crore during the year against Rs 1,429.23 crore in the previous year.

"The focus on priority products and their good performance helped us report robust sales. There are two seminal areas on which we have leveraged our expertise and resources in the past year including value addition to parent company's global R&D through clinical research and a unique India-centric strategy," said S Kalyanasundaram, managing director.

During the year, the company launched four new products licensed from companies in the US and Japan.

These was Parit (Rabeprazole) in alliance with Japan-based Eisai, Ferronone (a novel chelated iron) in alliance with US-based Albion and two new oral contraceptives in alliance with Organon.

The company commenced the share buyback programme in May 2005 and has bought back 26.19 lakh shares of Rs 10 each for an aggregate consideration of Rs 209.16 crore at an average price of Rs 798.48 (inclusive of associated costs) from the open market through stock exchanges.

The buyback programme was closed by the company on December 21, 2005 resulting in a reduction in the paid-up share capital to Rs 84.70 crore from Rs 87.32 crore. Consequently, the promoter shareholding has increased from 49.15 per cent to 50.67 per cent.