India’s GlaxoSmithKline Pharma reports profit rise on strong demand

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(Reuters) -India’s GlaxoSmithKline Pharmaceuticals reported a higher fourth-quarter profit on Tuesday, led by steady demand for its generic drugs.

The Indian unit of British drugmaker GSK reported consolidated profit of 2.63 billion rupees ($30.86 million) in the quarter ended March 31, up 35% year-on-year.

Its revenue from operations climbed about 5% to 9.74 billion rupees.

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KEY CONTEXT

GlaxoSmithKline Pharma has been benefitting from rising market share for its antibiotic Augmentin and respiratory drugs Nucala and Trelegy. Strong demand for its shingles vaccine, Shingrix, has also boosted earnings, the company said.

These have also helped it mitigate the impact of pricing curbs on some of its drugs that have been on the Indian government’s essential medicines list since September 2022.

PEER COMPARISON

Estimates (next 12 Analysts’ sentiment

months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to Div

TDA growth (%) growth rating* analyst price yield

(%) s target** (%)

GlaxoSmithKline 45.82 33.62 9.64 12.65 Buy 4 0.96 1.18

Pharmaceuticals

Ltd

Pfizer Ltd 28.41 21.70 9.21 13.28 Buy 3 0.71 0.82

Aurobindo Pharma 15.86 9.23 10.13 22.60 Buy 23 0.82 0.37

Ltd

Abbott India Ltd 40.52 31.75 7.38 12.64 Strong 5 0.90 1.36

Buy

* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

— All data from LSEG

— $1 = 85.2150 Indian rupees

(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)