Motilal Oswal: Covid-19 Led Weakness In GSK Pharma’s Performance In Q1

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.GlaxoSmithKline Pharmaceuticals Ltd.’s performance for the quarter was deeply impacted by the Covid-19-led disruption. As a result, the company posted the lowest revenue recorded in the past 16 quarters.The severity amplified with reduced operating leverage. The outlook is expected to gradually improve with the easing of the lockdown.Revenues were down 17.7% to Rs 6.5 billion (versus our estimate of Rs 7.8 billion). Gross margin expanded 230 basis points YoY to 60.3%, led by a better product mix.However, the Ebitda margin contracted 340 basis points YoY to 17.6% on higher employee costs and other expenditure (up 530 basis points and 40 basis points respectively YoY as a percentage of sales), offsetting the benefit of better gross margin.Ebitda declined by 31% YoY to Rs 1.1 billion (versus out estimate of Rs 1.7 billion). Adjusting for interest on income tax refund in other income, profit after tax was down 33% YoY to Rs 787 million (our estimate Rs 1.3 billion)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Covid-19 Led Weakness In GSK Pharma’s Performance In Q1

Motilal Oswal: Covid-19 Led Weakness In GSK Pharma’s Performance In Q1

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