Glaxo: 1HFY02 PBT drops 34% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Glaxo: 1HFY02 PBT drops 34%

Jul 28, 2001

Glaxo has reported a sharp drop in sales and PBT for 2QFY02. The results declared by the company were more or less expected by the markets. There is an one time charge of Rs 75 m in 2QFY02 on account of expenses of new launches and restructuring expenses in relation with amalgamation of SmithKline Beecham. Though operating margins have dropped at the look of it, after adjusting for one time charges, the operating margins have remained stable.

(Rs m)1HFY011HFY02%Change2QFY012QFY02%Change
Sales 4,700 3,927 -16.5% 2,867 1,983 -30.8%
Other Income 161 147 -8.6% 81 83 3.0%
Expenditure 4,244 3,631 -14.4% 2,555 1,850 -27.6%
Operating Profit (EBDIT) 456 296 -35.2% 312 133 -57.4%
Operating Profit Margin (%)9.7%7.5% 10.9%6.7% 
Interest 47 42 -9.0% 26 20 -23.7%
Depreciation 77 74 -4.8% 38 36 -5.8%
Profit before Tax 493 327 -33.8% 329 161 -51.2%
Extraordinary Income 155 394   105 394  
Tax 212 193 -9.0% 139 129 -7.3%
Profit after Tax/(Loss) 436 527 20.8% 295 425 44.1%
Net profit margin (%)9.3%13.4% 10.3%21.4% 
No. of Shares (eoy) (m) 60 60   60 60  
Diluted Earnings per share* 14.6 17.6   19.7 28.4  
P/E (at current price) 14.4  8.9 
(*- annualised)      

The decline in turnover can largely be attributed to drop in sales of Ceftum, Cobadex, Forte and Betnesol, the key products for the company. The company has identified 30 strategic key brands, which contributes around 75% of the total turnover. The promotion expenses would be restricted to brands that have potential to provide growth momentum. Going forward, the company also plans to have tighter control over its administrative costs. Glaxo has recently launched an anti asthma (Seretide) an anti-allergy drug (Flixonase) and an smoking cessation pill (Zyban).

At the current market price of Rs 253, the stock is trading at a P/e of 12x its expected earnings for FY02. The company is expected to benefit on account of cost savings from amalgamation with SmithKline Pharma.

Equitymaster requests your view! Post a comment on "Glaxo: 1HFY02 PBT drops 34%". Click here!


More Views on News

GSK PHARMA Announces Quarterly Results (3QFY21); Net Profit Up 124.4% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, GSK PHARMA has posted a net profit of Rs 2 bn (up 124.4% YoY). Sales on the other hand came in at Rs 9 bn (up 10.2% YoY). Read on for a complete analysis of GSK PHARMA's quarterly results.

GSK PHARMA Announces Quarterly Results (2QFY21); Net Profit Down 84.8% (Quarterly Result Update)

Oct 30, 2020 | Updated on Oct 30, 2020

For the quarter ended September 2020, GSK PHARMA has posted a net profit of Rs 765 m (down 84.8% YoY). Sales on the other hand came in at Rs 9 bn (down 0.3% YoY). Read on for a complete analysis of GSK PHARMA's quarterly results.

GSK PHARMA 2018-19 Annual Report Analysis (Annual Result Update)

Jun 24, 2019 | Updated on Jun 24, 2019

Here's an analysis of the annual report of GSK PHARMA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of GSK PHARMA. Also includes updates on the valuation of GSK PHARMA.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 19, 2021 09:48 AM


  • Track your investment in GSK PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks