GSK Pharma

GlaxoSmithKline Pharma posted a good set of numbers for Q4FY15. Net profit came in at Rs.103 crore, up 7% (YoY) on a 2% rise in net sales at Rs.613 crore. Costs were down 1%. EBITDA showed a healthy 17% jump at Rs.126 crore and margins improved from 17.70% to 20.32%.

The company ended FY15 on a 15-month period and exceptional expense of Rs.52 crore is what pulled down the consolidated net profit to Rs.476 crore, down 1%. This was despite a 29% rise in net sales at Rs.3272 crore. This exceptional expense included Rs.30 crore as rationalization of capital assets of one of the dosage forms at its Nasik plant and Rs.22 crore towards actuarial loss on employment benefits, due to change in actuarial assumptions.

Like a typical MNC, the company remains debt free with rich reserves at end of FY15 at Rs.1744 crore and cash balance was at Rs.1911 crore. EPS stands at Rs.56 (Rs.10 FV), discounting the current price by 58 times.