Operating profit margin has jumped from 17.59% to 19.20%, leading to 32.96% rise in operating profit to Rs 151.67 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 16.51% to 22.62%.   Purchase of finished goods cost fell from 22.96% to 17.60%.   Employee cost decreased from 23.50% to 20.90%.   Other expenses rose from 19.38% to 19.98%.   

Other income fell 45.22% to Rs 31.73 crore.  Provision for interest fell 26.85% to Rs 0.79 crore.  

Provision for depreciation fell 18.65% to Rs 17.71 crore.  

Profit before tax grew 10.57% to Rs 164.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 43.82 crore, compared to Rs 38.31 crore.  Effective tax rate was 26.57% compared to 25.69%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 9.25% to Rs 121.08 crore.  

Promoters' stake was 75.00% as of 30 June 2021 ,compared to 75.00% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Glaxosmithkline Pharmaceuticals has declined 0.79% to Rs 3198.86 crore.  

Operating profit margin has jumped from 20.38% to 21.74%, leading to 5.79% rise in operating profit to Rs 695.33 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 14.55% to 14.58%.   Purchase of finished goods cost rose from 26.66% to 27.18%.   Employee cost decreased from 19.28% to 18.98%.   Other expenses fell from 19.35% to 17.79%.   

Other income rose 39.96% to Rs 110.58 crore.  Provision for interest fell 44.32% to Rs 3.53 crore.  Loan funds declined from Rs 41.69 crore as of 31 March 2020 to Rs 34.60 crore as of 31 March 2021.  Inventories rose to Rs 546.70 crore as of 31 March 2021 from Rs 483.03 crore as of 31 March 2020.  Sundry debtors were higher at Rs 215.60 crore as of 31 March 2021 compared to Rs 99.80 crore as of 31 March 2020.  Cash and bank balance rose to Rs 1,157.98 crore as of 31 March 2021 from Rs 1,083.20 crore as of 31 March 2020.  

Provision for depreciation fell 4.11% to Rs 79.28 crore.  Fixed assets declined from Rs 828.58 crore as of 31 March 2020 to Rs 355.47 crore as of 31 March 2021.  Intangible assets declined from Rs 49.62 crore to Rs 43.36 crore.  

Profit before tax grew 11.72% to Rs 723.10 crore.  Share of profit/loss were nil in both the periods.  Extraordinary items were increased to Rs -172.60 crore.  Provision for tax was expense of Rs 192.35 crore, compared to Rs 212.55 crore.  Effective tax rate was 34.94% compared to 69.52%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 284.28% to Rs 358.15 crore.  

Equity capital stood at Rs 169.41 crore as of 31 March 2021 to Rs 169.41 crore as of 31 March 2020.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 75.00% as of 31 March 2021 ,compared to 75.00% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 577.93 crore for year ended March 2021 from Rs 490.50 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 44.23 crore, compared to Rs 155.90 crore during the year ended March 2020. 

Other Highlights

The company announced its decision to transfer its rights in relation to the odex and Ostoca/cium brands to GlaxoSmithKline Asia Private Limited, for an aggregate consideration of Rs 1649 crore.

Management Commentary: Sridhar Venkatesh, Managing Director, GlaxoSmithKline Pharmaceuticals Limited, said, "We continue to show remarkable resilience and deliver growth despite the headwinds caused by the COVID-19 pandemic. Our pharmaceutical manufacturing team worked round the clock to fulfill significantly increased demand for our key brands, especially for Ca/pol (paracetamol). This effort ensured that patients continued to have access to this important medication during the pandemic. While our vaccines business was impacted due to low vaccination rates, many of our key brands witnessed strong growth fuelled by disciplined execution, enhanced digital capabilities and agility in the market resulting in market share gains."

Mr. Venkatesh added, "As part of our parent GSK pie's new ambition to create two world class companies in Pharmaceuticals and Consumer Healthcare, we have decided to transfer our rights in relation to the lodex and Ostocalcium brands to GlaxoSmithKline Asia Private Limited. The transaction is expected to be completed before the end of the year, subject to shareholder approval and the customary closing conditions, including relevant regulatory approvals".