Page 7 - GlaxoSmithKline Pharmaceuticals AR 2012

3
Directors’ Report
The Directors have pleasure in submitting their Report for the year ended 31 st December 2012
1. Results for the year ended 31st December 2012
Year ended
31st December
2012
Rs. in lakhs
Year ended
31st December
2011
Rs. in lakhs
Sale of Products (Net of Excise Duty) .. .. .. 2599,93.10 2338,03.40
Other Operating Revenue .. .. .. .. .. 30,37.21 37,84.70
Revenue from Operations .. .. .. .. .. 2630,30.31 2375,88.10
Profit before Exceptional Items and Tax .. .. .. 994,77.65 921,59.78
Less: Exceptional Items .. .. .. .. .. (148,21.70) (322,54.14)
Profit before Tax .. .. .. .. .. .. 846,55.95 599,05.64
Less: Tax expense .. .. .. .. .. .. 269,30.06 168,45.22
Net Profit for the year .. .. .. .. .. 577,25.89 430,60.42
Add: Opening Surplus brought forward from
the previous year .. .. .. .. .. 1110,59.15 1164,52.81
Less: Appropriations:
Proposed Dividend (including tax on
distributed Profits) .. .. .. .. .. 487,17.85 441,48.04
Transfer to General Reserve .. .. .. .. 57,72.59 43,06.04
Closing Surplus carried forward .. .. .. .. 1142,94.60 1110,59.15
2. Dividend
The Directors recommend a Dividend of Rs. 50 per Equity Share for the year (previous year:
Rs. 45.00 per Equity Share). If approved by the Shareholders at the Annual General Meeting, the
Dividend will absorb Rs. 423 crores. The Dividend Distribution Tax borne by the Company will
amount to Rs. 64 crores.
3. Management Discussion and Analysis
(a) Finance and Accounts
Your Company maintained its prominent position in the Pharmaceuticals market with Sale of
Products (net of Excise Duty) registering a growth of 11.2%. Sales of the Pharmaceuticals
business grew by 12.5% supported by good growth in all of the Company’s diversified
business units i.e. in the Mass Markets, Mass Specialty, Vaccines and Specialty segments
such as dermatologicals, oncology, etc.
Despite a challenging operating environment, material cost increases and significant
investments in field force expansion in recent years, Profit before Exceptional items and
Tax grew by 7.9%, and Profit before Investment Income, Depreciation and Tax amounted to
32% of net Sales.
Cash generation from Operations and before Exceptional items continues to remain favourable,
driven by business performance and management of working capital. Your Company continues
to look for ways and means of deploying accumulated cash balances which remain invested
largely in bank deposits.
Your Company has not accepted any fixed deposits during the year. There was no outstanding
towards unclaimed deposit payable to depositors as on 31 st December 2012.
(b) Pharmaceuticals Business performance and outlook
Your Company continues to enjoy a leadership position in the therapy areas in which it
provides health care solutions to patients.