India's GlaxoSmithKline Pharma posts higher Q1 adjusted profit on strong demand

GlaxoSmithKline Pharmaceuticals

02/08/2024 11:23

BENGALURU, Aug 2 (Reuters) - India's GlaxoSmithKline Pharmaceuticals  GLAX.NS  reported a higher
first-quarter adjusted profit on Friday, driven by strong demand for its generic drugs and vaccines.
    The Indian unit of British drugmaker GSK  GSK.L  reported a consolidated profit before tax and
exceptional items of 2.49 billion rupees ($29.7 million) for the quarter ended June 30, compared with a
profit of 1.64 billion rupees year ago.
    The company had a one-time gain from the sale of surplus residential properties worth 173 million rupees
in the year-ago period.
    Its revenue from operations climbed 7% to 8.15 billion rupees in the latest quarter.
    
    KEY CONTEXT
    Earnings at drugmakers like GlaxoSmithKline Pharma have been pressured as prices of some of their key
drugs were capped under the Indian government's essential medicines list (NLEM) since September 2022.
    However, the company said that a rising market share of its key brands - Ceftum, Augmentin and Calpol -
has helped it mitigate the impact of these price caps. 
    
    PEER COMPARISON
    
                                              Estimates (next 12         Analysts' sentiment         
                                                   months)                                           
                   RIC        PE     EV/EBI  Revenue     Profit    Mean      # of      Stock to      Div
                                     TDA     growth (%)  growth    rating*   analysts  price         yield
                                                         (%)                           target**      (%)
 GlaxoSmithKline    GLAX.NS   54.83   40.19     9.77      48.58    Buy              4      1.02         1.16
 Pharmaceuticals                                                                                     
 Abbott India       ABOT.NS   43.26   33.51    10.69      12.81    Strong           4      0.97         1.44
                                                                   Buy                               
 Pfizer             PFIZ.NS   38.18   30.52     6.92      15.39    Buy              3      1.10         0.62
 Aurobindo Pharma   ARBN.NS   20.57   11.79     9.19      15.66    Buy             25      1.08         0.31
 
    
    APRIL TO JUNE STOCK PERFORMANCE
-- All data from LSEG

-- $1 = 83.7210 Indian rupees

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APRIL TO JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3ylDPP6
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))