GlaxoSmithKline Pharmaceuticals - 1QFY2018 Result Update - Angel Broking

GlaxoSmithKline Pharmaceuticals (GSK) posted lower than expected results on sales and OPM fronts for 1QFY2018. The revenues came in at Rs. 587cr v/s. Rs. 700cr expected, registering a yoy de-growth of 14.3%, mainly on the back of GST implementation. On the OPM front, the EBDITA margins came in at (0.1)% (v/s. 12.6% expected) as compared to 10.2% in 1QFY2017, mainly driven by lower sales during the quarter. The Adj. PAT came in at Rs. 18cr v/s. Rs. 71cr in 1QFY2017, a yoy dip of 75.0%. We maintain our Neutral.

Results lower than expectations: GlaxoSmithKline Pharmaceuticals (GSK) posted lower than expected results on sales and OPM fronts for 1QFY2018. The revenues came in at Rs. 587cr v/s. Rs. 700cr expected, registering a yoy de-growth of 14.3%, mainly on the back of GST implementation. Adjusted for the GST impact, revenue grew 6% yoy in 1QFY2018. On the OPM front, the EBDITA margins came in at (0.1)%% (v/s. 12.6% expected) as compared to 10.2% in 1QFY2017. This was mainly driven by lower sales during the quarter. The Adj. PAT for the quarter came in at Rs. 18cr v/s. Rs. 71cr in 1QFY2017, a yoy dip of 75.0%.

Outlook and valuation: On the operational front, we expect the company's net sales to post a CAGR of 11.7% to Rs. 3,651cr, while the EPS is expected to post a CAGR of 30.6% over FY2017-19E. We remain Neutral on the stock.

Shares of GLAXOSMITHKLINE PHARMACEUTICALS LTD. was last trading in BSE at Rs.2380 as compared to the previous close of Rs. 2360.4. The total number of shares traded during the day was 1455 in over 249 trades.

The stock hit an intraday high of Rs. 2380 and intraday low of 2337. The net turnover during the day was Rs. 3418314.

Source : Equity Bulls

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