Net sales for the quarter came in at Rs 685 crores, recording a growth of eight per cent
GlaxoSmithKline Pharmaceuticals declared its financial results for the quarter ended 30 June 2016. Net sales for the quarter came in at Rs 685 crores, recording a growth of eight per cent as compared to the same prior year period. The sales growth was adversely impacted by the Drug Pricing Control Order (DPCO) revisions in the quarter. Consequently, Profit Before Tax (PBT) at Rs 111 crores and Profit After Tax (PAT) at Rs 72 crores decline by 23 per cent against the same prior year period.
Commenting on the results, A Vaidheesh, Managing Director, GlaxoSmithKline Pharmaceuticals said, “The government mandated DPCO price revisions in the quarter have had an adverse impact on our sales and profit growth rate for the quarter. Our double digit growth profile, experienced over the past two quarters, has been reduced to eight per cent growth for this current quarter and the main drive for the profit decline. The company is reviewing the commercial opportunity arising from the price revision and continues to be well placed to respond to both the competitive pressures and challenging pricing dynamics of the market.”
“Investments at our existing site at Nashik as well as our proposed state-of-the art manufacturing site at Vemgal, Bengaluru, remain on track to deliver high quality products to meet the future demands of our India patients. Furthermore, the company has enhanced its customer facing technology platform during the quarter to ensure the high quality interactions between the company and its customers remains optimal,” he added.
“Our PAT decline of 23 per cent is primarily due to the mandated DPCO price revision and partially impacted by non-recurring costs, CSR phasing as well as a reduction in lower Other Income as the business enhances its capital investment programme to meet the future demand of the market,” he further informed.