Glaxo net profits fall

MUMBAI, AUG 21: Glaxo India Ltd has earned a higher gross profit of Rs 45.27 crore during the six-month period ended June 1997 against Rs 41.79 crore in the same period last year.

However, the net profit has dropped to Rs 17.98 crore against Rs 20.03 crore mainly due to a provision of Rs 11.02 crore Rs 1.46 crore made for payment under Voluntary Retirement Schemes. The provision for depreciation is Rs 6.07 crore Rs 5.70 crore and taxation Rs 10.20 crore Rs 14.60 crore.The gross sales showing a smart rise at Rs 360.73 crore for the period against Rs 310.95 crore in the corresponding period of the last year.The company, based on past experience, considers the exception item of payments under voluntry retirement schemes of Rs 1102 lakh as an investment in improved productivity for the future. The tax provision for the six months takes into account of the reduction in the corporate tax rate from 43 per cent to 35 per cent with effect from April 1997.

In the meantime, Burroughs wellcome India Ltd has reported better working results during the first half year. ended June 1997.