Burroughs Wellcome has turned in a similar performance. Net profit for the third quarter stood at Rs 8.30 crore, close to the Rs 9.52 crore earned for the first half of the current year. Again, as in the case of Glaxo, turnover growth was much lower at Rs 59.61 crore, compared with Rs 90.43 crore in the first half. Sales for the nine-month period increased 6.5 per cent over last year. However, in contrast to Glaxo, other income for just the current quarterstood at Rs 2.74 crore, against Rs 3.56 crore for the first half.

Glaxo's total expenditure for the third quarter stood at Rs 184.07 crore compared to Rs 329.90 crore for the first half, while Burroughs Wellcome's total expenditure was Rs 47.97 crore in the current quarter. For the first half, Burroughs Wellcome had an expenditure of Rs 75.22 crore.

BINSIGHT :

Higher exports buoy margins: Although Glaxo's nine-monthly results are not strictly comparable with that of the corresponding period of last year, because of acquisition of the Biddle Sawyer Group, the net margins in the third quarter have risen to 9.26 per cent, compared with seven per cent in the second half.

Higher exports have neutralised the effect of lowering of prices for the anti-ulcer intermediate ranitidine by the NPPA to Rs 1,200 per tonne, inspite of the cost of production being at Rs 1,400 per tonne. The 43 per cent jump in exports has reduced the tax rate for the company. Further, the other income as a percentage of PBThas declined from a general level of 35 per cent to less than 18 per cent. The margins for Burroughs Wellcome have also risen in the third quarter to 14 percent compared to 12 per cent in the first half.