GlaxoSmithKline Pharmaceuticals announced its 2QCY2014 numbers today, which came below expectations on OPM and net profit front. On the other hand the sale was in line with expectations.

The company posted revenue of Rs 6.55 billion v/s Rs 6.6 billion expected, up 2.8% yoy. EBITDA margin came in at 16.7% v/s 19.8% expected an 116bps yoy dip.

Commenting on the same, Sarabjit Kour Nangra, vice president research - Pharma, Angel Broking said, "This was mainly on back of the gross margin dip, which came in at 51.5% V/s 53.6% during the last corresponding period. The staff cost and other expenditure on the other hand posted a mere 3.4% yoy growth and a dip of 2.1% respectively.

Thus, PAT came in at Rs 982 million v/s Rs 1.25 billion expected , a dip of 3.4% yoy. Also other income during the period was lower by 31.7% yoy to end the period at Rs 450 million. We maintain our neutral rating on the stock."

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