Glaxosmithkline Pharmaceuticals Announced Its Q4fy15 Results

GlaxoSmithKline Pharmaceuticals (GSK) is established in the year 1924 in India and employs over 4500 people. Its product portfolio includes prescription medicines and vaccines. Its prescription medicines range across therapeutic areas, such as anti-infective, dermatology, gynecology, diabetes, cardiovascular disease and respiratory diseases. The Company has two units which include Chemistry Research and Development and Pharmaceutical Research and Development. The plant at Nashik makes formulations while bulk drugs and the active pharmaceutical ingredients are manufactured at Thane. GSK has a clinical development center in Bangalore.

Net sales of GSK reduced by 4.69 per cent from Rs 651 crore in December 2014 quarter to Rs 620 crore in March 2015 quarter. Total expenditure of GSK decreased by 7.77 per cent and stood at Rs 495 crore in March 2015 quarter against Rs 536 crore in previous quarter. The reduction in total expenditure was predominantly due to a 24.38 per cent reduction in raw material prices, a 9.44 per cent reduction in other expenses and a 4.35 per cent reduction in employee expenses during the same period.

The company’s EBITDA increased by 9.68 per cent because of its improved operational efficiency and stood at Rs 126 crore in March 2015 quarter against Rs 115 crore in previous quarter. Its EBITDA margin for March 2015 quarter expanded by 266 basis points to 20.28 per cent against December 2014 quarter. PBT of the company increased heavily by 54.88 per cent on sequential basis and stood at Rs 156 crore in March 2015 quarter because GSK accounted lower exceptional expenses of Rs 5.81 crore, which were actuarial loss on employee benefits due to change in actuarial assumptions in March 2015 quarter, against Rs 46 crore in  December 2014. Its PAT increased by 127.04 per cent to Rs 103 crore in March 2015 quarter from Rs 45 crore in December 2014. GSK's PAT margin was 16.58 per cent in March 2015 quarter against 6.96 per cent for previous quarter.

On year on year basis, net sales of GSK increased by 1.72 per cent from Rs 610 crore in March 2014 quarter to Rs 620 crore in March 2015 quarter ended. Total expenditure of GSK decreased by 1.54 per cent and stood at Rs 495 crore in March 2015 quarter against Rs 502 crore in March 2014 quarter. The reduction in total expenditure was predominantly due to a 19.19 per cent reduction in purchase of traded goods, a 2.09 per cent reduction in consumption of raw materials during the same period. However, there was increment of 21.13 per cent in employee expense, a 4.73 per cent of increment in other expenses in March 2015 quarter.

The EBITDA of the company increased by 16.89 per cent on yearly basis and stood at Rs 126 crore in March 2015 quarter ended. Its EBITDA margin was 20.28 per cent in March 2015 against 17.64 per cent in March 2014. GSK's PBT increased by just 5.03 per cent with Rs 156 crore in March 2015 quarter because its exceptional expense such as actuarial loss on employee benefits due to change in actuarial assumptions with Rs 5.81 crore in March 2015 quarter and a 9.8 per cent reduction in other income of the company amount to Rs 40 crore in March 2015 quarter. GSK posted its PAT growth of 6.54 per cent on yearly basis and PAT stood at Rs 103 crore in March 2015 quarter. Its PAT margin was 16.58 per cent in March 2015 against 15.83 per cent in March 2014.

GSK changed financial result policy from January-December to April-March since FY15. Total revenue of the company was Rs 3305 crore in 15 months ended March 31, 2015 and Rs 2563 crore in CY13. Total expenditure of the company was Rs 2672 crore in FY15. It was able to maintain total expenditure at 80.84 per cent as a percentage of net sales in FY15 compared to 79.39 per cent of net sales in CY13. Consumption of raw material of GSK remain at 22.22 per cent of net sales in FY15 against 21.12 per cent of sales in previous year. Consumption of raw materials  amount to Rs 734 crore in FY15 compared to Rs 544 crore in CY13. Employee expenses were at 14.92 per cent of sales in FY15 compared to 14.13 per cent in CY13. Other expenses of the company were remain at 21.98 per cent of net sales during  15 months ended March 31, 2015 whereas 21.61 per cent of a sales in CY13.

Its EBITDA was Rs 633 crore in FY15. EBITDA margin redcuced by 146 basis points in FY15 to 19.16 per cent in FY15. EBIT margin of the company was 18.39 per cent in FY15 compared to 19.84 per cent in CY13. Its PBT was Rs 756 crore in FY15 whereas Rs 711 crore in CY13. PBT margin of GSK was 22.87 per cent in FY15 against 27.76 per cent in CY13, as company had exceptional expense of Rs 51.88 crore in FY15 against exceptional income of Rs 26 crore in CY13. Its exceptional expense included rationalization of capital assets for one of the dosage forms at Nashik manufacturing facility with charge of Rs 30.37 crore and actuarial loss on employee benefits due to change in actuarial assumptions with Rs 21.51 crore in FY15. PAT of GSK was RS 476 crore in FY15 whereas Rs 482 crore in CY13. Its PAT margin was 14.42 per cent in FY15 against 18.80 per cent in CY13.

The compay's new shareholding pattern indicates the FII holdings increased by 82 basis points to 14.23 per cent and DII holding decreased by 11 basis points to 15.88 per cent during March 2015 quarter.