PRESS RELEASE

Wednesday, 25thOctober 2017, Mumbai

GlaxoSmithKline Pharmaceuticals Limited records a Revenue increase of 5%

------------------------------------------------------------------------------- GlaxoSmithKline Pharmaceuticals Limited today declared its financial results for the quarter ended 30th September 2017. Revenue for the quarter ended 30th September 2017 at Rs.836 crores recorded an increase of 5% as compared to the same prior year period. The performance includes a significant recovery of prior quarter trade channel destocking arising from the introduction of Goods and Services Tax (GST). Furthermore, the Revenue is deflated by an estimated 6% during the quarter, that is predominately profit neutral, and arising from the impact of the newly implemented GST rates. Consequently, the Revenue of this quarter is not directly comparable to prior year quarters due to the dynamics and rates from GST.

Profit Before Tax (PBT) at Rs. 199 crores and Profit After Tax (PAT) at Rs 130 crores grew by 31% and 32% respectively against the same prior year period.

Commenting on the results, A. Vaidheesh, Managing Director, GlaxoSmithKline Pharmaceuticals Limited said,

"Our headline Revenue is impacted by numerous factors during the quarter. Our trade channel stock has significantly recovered during the quarter to pre-GST levels and patient needs have been successfully served during the GST transitional period.

Our underlying performance, neutralising the impacts of GST and prior year disposals, is growing healthily and at least in line with market.

During the quarter, the Company announced its intention to dispose of its surplus Thane land for 555Cr subject to receipt of all regulatory and statutory approvals, as well as various conditions as agreed with the Purchaser. The proceeds and profit on disposal will be announced and accounted for upon the signing of definitive Agreements.

The construction of our state-of-the art manufacturing site at Vemgal, Bengaluru, to meet future market demand is nearing completion with a site validation process expected to commence from mid next year."

About GlaxoSmithKline Pharmaceuticals Limited

GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies, committed to improving the quality of human life by enabling people to do more, feel better and live longer. For more information, visit www.gsk-india.com

Media Contacts: Ransom D'Souza

Vice President Corporate Communications and Government Affairs Email: ransom.a.dsouza@gsk.com

Tel: +91 22 24959203

GSK - GlaxoSmithKline Pharmaceuticals Ltd. published this content on 25 October 2017 and is solely responsible for the information contained herein.
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