GSK Pharma Q1 Review - Pain, Vaccine Therapies Hinder Revenue Growth: Motilal Oswal


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GlaxoSmithKline Pharmaceuticals Ltd. delivered lower-than-expected result in Q1 FY23 owing to muted sales in pain/hormone therapies and delay in recovery of vaccine therapy sales.

Revenue rose 4% YoY to Rs 7.5 billion (versus estimate of Rs 8.2 billion). Gross margin expanded 270 bps YoY to 61.5% due to product mix.

Ebitda margin improved at a lower rate of 150 bps YoY to 20% because of higher other expenses offset by lower employee cost.

GSK Pharma’s Ebitda grew 12.2% YoY to Rs 1.5 billion (versus estimate of Rs 1.9 billion). Adjusted profit after tax rose 8.3% YoY to Rs 1.2 billion for the quarter (versus estimate of Rs 1.4 billion).

We cut our earnings per share estimates for FY23/FY24 by 4%/5%, respectively, factoring in slower off-take of vaccine segment and elevated operational costs. We expect 9% earnings compound annual growth rate over FY22-24.

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