GlaxoSmithkline Pharmaceuticals today posted a massive decline in its net profit at Rs 46 lakh in the quarter ended March 31, from Rs 161 crore recorded in the corresponding period in the previous year.
The decline in its net profit was on account of an exceptional item during the period, which stood at Rs 185.87 crore, mainly deposited with the government regarding ongoing cases of drug overpricing as per the Supreme Court direction, the company said in a filing to the Bombay Stock Exchange (BSE).
Exceptional items include provisions of pricing of bulk drugs and formulations, interest claim, expenses for rationalisation initiatives, current taxes and deferred taxes,
During the period, the company had net sales of Rs 602.90 crore, an increase by 11.42% from Rs 541.10 crore posted in the year-ago period.
For the year-ended December 31, 2010, the company's net profit stood at Rs 563.69 crore while it had a net sales of Rs 2,111.64 crore.
Shares of GlaxoSmithkline Pharmaceuticals closed at Rs 2,287.85 on the BSE, up 1.92% from the previous close.