GSK Pharma gets thumbs down

GlaxoSmithKline Pharma (GSK Pharma), reported a dismal performance for Q2FY21 after market hours yesterday.

The company posted a 85% (YoY) decline in consolidated net profit at Rs.76 crore. This was on a marginally decreased revenue from operations at Rs.879 crore v/s Rs.882 crore (YoY).

The company has recognised a financial impact of Rs 64 crore in Q2 to reflect the estimated realisable value of the assets, associated costs and impacts of reversal of provision on account of Zinetac recall.

After considering all the strategic options available with the company for its manufacturing site at Vemgal following the global voluntary recall of Zinetac, the company has decided to proceed with the sale of the site and has classified the assets as held for sale.

The stock is down in the red. From its close of yesterday at Rs.1499.55, it went down 2% to Rs.1470. Its 20% LC of the day is at Rs.1199.65.