GSK's India unit posts 9% increase in Q3 profit as input costs slump

GlaxoSmithKline Pharmaceuticals Ltd, the Indian unit of UK's GSK plc, reported a 9.5 per cent rise in third-quarter profit on Tuesday, in line with analysts' estimates, as a sharp drop in input costs more than offset a revenue decline. The Mumbai-based company, said consolidated net profit rose to 1.65 billion rupees ($20 million) in the three months ended Dec. 31, from 1.50 billion rupees a year ago. Analysts, on average, were also expecting a profit of 1.65 billion rupees, according to Refinitiv IBES data.

Input costs for the firm, which makes the Augmentin antibiotic and T-bact oinments to fight bacterial infections, slumped 61.2 per cent to 470.1 million rupees. Consolidated revenue from operations, however, fell 1.7 per cent to 8.02 billion rupees. The company's shares settled 0.2 per cent higher at 1,240.15 rupees ahead of the results, while the Nifty pharma index ended flat. Last week, GSK beat fourth-quarter profit and sales forecasts and unveiled an upbeat guidance for 2023.