GlaxoSmithKline Pharmaceuticals Limited (GSK Pharma) has reported a mixed set of financial results for the second quarter ended September 30, with a decline in revenue but an increase in profitability.

Financial Highlights

Revenue Performance

GSK Pharma experienced a decline in revenue from operations, which decreased to ₹97,994.00 lakhs from ₹101,077.00 lakhs in the same quarter last year, representing a 3.05% year-over-year decrease. For the six-month period, revenue dropped to ₹178,511.00 lakhs from ₹182,542.00 lakhs year-over-year.

Profitability Improvements

Despite the revenue decline, the company managed to improve its profitability:

• Net Profit: Increased to ₹25,500.00 lakhs from ₹23,640.00 lakhs, showing a 7.87% year-over-year growth.

Earnings Per Share

Basic and diluted earnings per share for the quarter stood at ₹18.06 compared to ₹27.14 in the corresponding quarter last year, marking a decrease of 33.46%.

Solar Power Investment

The company's Board has approved an investment of ₹1.74 crores for a Solar Power project at its Nashik plant under the Group Captive mechanism. This investment involves:

• Acquiring a 26% shareholding in CleanMax Galapagos Private Limited, a special purpose vehicle.
• The SPV will supply 4.95 MWp capacity renewable energy.

This move aligns with the growing trend of pharmaceutical companies investing in sustainable energy solutions to reduce their carbon footprint and operational costs.

Exceptional Items

GSK Pharma reported exceptional items credit of ₹264.00 lakhs from profit on sale of surplus residential properties.

Conclusion

GlaxoSmithKline Pharmaceuticals' Q2 results present a mixed picture. While the company faces challenges in revenue growth, it has managed to improve its bottom line. The investment in solar power demonstrates a commitment to sustainability and potentially long-term cost reduction. As the pharmaceutical landscape continues to evolve, GSK Pharma's ability to maintain profitability while addressing revenue challenges will be crucial for its future performance.

GlaxoSmithKline Pharmaceuticals Limited (GSK Pharma) has announced strong financial results for the second quarter and half year ended September 30, 2024, showcasing growth in both revenue and profitability.

Q2 FY25 Performance Highlights

• Revenue Growth: The company reported standalone revenue from operations of Rs 1,000.05 crore for Q2 FY25, marking a 4.9% increase from Rs 953.38 crore in the corresponding quarter last year.
• Profit Surge: Profit for the quarter rose to Rs 248.69 crore, up 15.4% compared to Rs 215.54 crore in the same period last year.
• Earnings Per Share: Basic and diluted earnings per share after exceptional items stood at Rs 14.68 for the quarter.

H1 FY25 Financial Overview

• Half-Year Revenue: For the six-month period, standalone revenue reached Rs 1,811.05 crore, up 7.1% from Rs 1,691.40 crore in the previous year.
• Half-Year Profit: Profit for H1 FY25 increased significantly to Rs 430.34 crore, a 24.3% jump from Rs 346.12 crore in the corresponding period.
• Half-Year EPS: The company reported earnings per share of Rs 25.40 for the half year.

Special Interim Dividend

In a move that will likely please shareholders, the Board of Directors has recommended a special interim dividend of Rs 12 per equity share on a face value of Rs 10 each.

Income Tax Refund

GSK Pharma received a substantial income tax refund of Rs 222.32 crore for the Assessment Year 2022-23, which may have contributed to the company's strong financial position.

Financial Analysis

Comparing the quarterly results with the previous year:

The company's performance shows resilience and growth despite challenging market conditions. The increase in revenue and profit indicates effective cost management and possibly market share gains.

Management Commentary

While specific management comments were not provided, the strong financial results and the declaration of a special interim dividend suggest confidence in the company's financial health and future prospects.

GSK Pharmaceuticals' robust performance in Q2 and H1 FY25, coupled with the special dividend announcement, positions the company favorably in the pharmaceutical sector. Investors and stakeholders will likely view these results positively, reflecting the company's ability to deliver growth and shareholder value in a competitive market environment.