GlaxoSmithKline Pharma PAT seen up 16% at Rs 171 cr

NEW DELHI: GlaxoSmithKline Pharmaceuticals Ltd is expected to post a net profit of Rs 171 crore for the June 2012 quarter, a 16 per cent YoY increase from Rs 147 crore, according to ET Now estimates.

The pharma major, which follows a January-December financial year, is likely to report today a jump in net sales to Rs 636 crore, up 13 per cent YoY from Rs 561 crore, led by growth in priority business.

Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to rise by 11 per cent to Rs 207 crore against Rs 187 crore in the corresponding quarter of the previous year.

Margins for the company are seen at 32.6 per cent against 33.3 per cent in the corresponding quarter of the last year.

Five things to watch out for in Q2 earnings

1) Revenues are expected to grow on higher contribution from vaccines business

2) Priority business which accounts for nearly 70-75 per cent of sales is expected to have grown by double digit

3) Drug price control order (DPCO) products, which constitute nearly 25-30 per cent of sales, are likely to see single-digit growth

4) Margins to be under pressures on import cost and field force expansion

5) Import costs to be higher on account of a depreciating rupee