GlaxoSmithKline Pharma plunges 13% on net loss of Rs 661 crore in Q3 - Business Standard
04-Feb-2020 09:53:09 AM
Shares of GlaxoSmithKline Pharmaceuticals tanked 13 per cent to Rs 1,429 on the BSE on Tuesday after the company reported a consolidated net loss of Rs 661 crore for the December 2019 quarter, mainly on account of financial impact related to the voluntary recall of Zinetac. The drug firm had posted a net profit of Rs 114 crore in the year-ago quarter.
The companys consolidated profit before exceptional items and tax (PBEIT) declined 15.5 per cent year on year (y-o-y) to Rs 120 crore against Rs 142 crore in the corresponding period of the previous financial year, GlaxoSmithKline Pharma said in a filing to the BSE.
Operational revenues were down 5.6 per cent to Rs 779 crore from Rs 825 crore in the previous year quarter. Earnings before interest, tax, depreciation and amortisation (Ebitda) margin stood at 16 per cent.
The company said the reported sales number for the quarter declined due to portfolio optimization and voluntary recall of Zinetac. Adjusting for the same the underlying sales growth is 6 per cent plus. The year-to-date underlying sales growth stands at 13 per cent and Ebitda margins have improved on account of various operation efficiencies, cost saving and working capital initiatives taken during the year, it said.
Following the recent decision to initiate a global voluntary recall of ranitidine products including Zinetac in India, the Ultimate Holding Company is continuing with investigations into the potential source of the N‐nitrosodimethylamine (NDMA) and has initiated a comprehensive strategic review of the impact of this recall on all related assets in India, GlaxoSmithKline Pharmaceuticals said.
As part of the ongoing strategic review, during the quarter, the holding company has recognised financial impairment of Rs 640 crore connected to the under-utilisation of its manufacturing facilities and Rs 96.6 crore on account of other related assets/ cost, it said.
At 09:36 am, the stock was trading 11 per cent lower at Rs 1,471 on the BSE, as compared to 1 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 142,042 shares changing hands on the NSE and BSE so far.