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Glaxo posts fine results for 1998; net up 20 p c to Rs 671 million

Pharmaceutical giant Glaxo India Limited has posted impressive financial results for the year ended December 31, 1998.

According to a company release, profit before tax (but before exceptional items) improved by 16 per cent from Rs 866.3 million to Rs 1.05 billion and profit after tax (but before exceptional items) at Rs 671.2 million improved by 20 per cent over the previous year.

The company has attributed the profit improvements to the savings in the costs of input materials through better purchasing efficiencies, improvements in manufacturing yields and efficiencies and other cost-saving measures during the year.

1998 also saw the benefits accruing from past valuatary separation schemes, which have now begun to pay back. Results could have been better but for an unfavourable price fixation of the bulk drug ranitidine and the large burden of additional levies in the last Union Budget, a company statement said.

Gross sales stood at Rs 8.62 billion and grew at 13.9 per cent excluding the sales of the products of the Biddle Sawyer group of companies, which are reported separately. Inclusive of those sales, the overall growth would be around 19 per cent.

Total pharmaceutical sales (including the incremental Biddle Sawyer sales) enabled the company to exceed the market rate of growth and retain its number one rank in the domestic pharmaceutical market.

Export growth of 46 per cent proved to be the most profitable activity of the company. Non pharmaceutical businesses also did well with growths of around 18 per cent in both agrivet farm care and qualigens fine chemicals activities.

UNI

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