India's GlaxoSmithKline Pharma posts higher Q1 adjusted profit on strong demand
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 GSKGSK.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 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Revenue growth (%) | Profit growth (%) | Mean rating* | # of analysts | Stock to price target** | Div yield (%) | |
GlaxoSmithKline Pharmaceuticals | GLAX.NS | 54.83 | 40.19 | 9.77 | 48.58 | Buy | 4 | 1.02 | 1.16 |
Abbott India | ABOT.NS | 43.26 | 33.51 | 10.69 | 12.81 | Strong Buy | 4 | 0.97 | 1.44 |
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
APRIL TO JUNE STOCK PERFORMANCE https://tmsnrt.rs/3ylDPP6
Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza
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