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GSK Pharma slips after weak Q1 performance

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Capital Market
Last Updated : Jul 30 2020 | 10:50 AM IST

GlaxoSmithKline Pharmaceuticals fell 2.16% to Rs 1450 after the drug maker's consolidated net profit fell 2.4% to Rs 110.83 crore on 17.7% decline in net sales to Rs 648.59 crore in Q1 FY21 over Q1 FY20.

Other income surged 88% YoY to Rs 57.92 crore in the first quarter, which includes interest on income tax refund of Rs 42.68 crore. Other income for the quarter ended 30th June 2019 includes interest on income tax refund of Rs 8.63 crore, the company said in its notes to accounts.

Profit before tax in Q1 June 2020 stood at Rs 149.14 crore, down by 15.3% from Rs 176.11 crore in Q1 June 2019. Current tax expense declined 32.4% year-on-year (YoY) to Rs 38.11 crore during the quarter.

Commenting on the results, Sridhar Venkatesh, managing director, GlaxoSmithKline Pharmaceuticals (GSK Pharma), said, "We demonstrated extreme resilience in the face of the unprecedented business environment created by the COVID-19 pandemic. While keeping employee safety and well-being as our topmost concern and remaining committed to patients' access to medicines, we were the first multi-national company to get back to the field once the lockdown restrictions were lifted by the government. It is encouraging for us to note that during such challenging times our market share has grown despite the established brands not performing up to our expectations due to prevailing market conditions. The FY21 is a promising year for GSK as we are set to introduce new assets and these launches, as it happens post regulatory approvals, shall contribute to GSK firming its position as a science- and innovation-led biopharmaceutical company."

GSK Pharma is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies.

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First Published: Jul 30 2020 | 10:12 AM IST

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