GlaxoSmithKline Pharmaceuticals on Tuesday reported 14.56 per cent decline in net profit to Rs 98.29 crore for the quarter ended June 30 as the company continued to be impacted by the revamped price control order.
The company had reported a net profit of Rs 115.04 crore during the same period last year.
Net sales of the company increased 2.84 per cent to Rs 654.96 crore for the second quarter as compared to Rs 636.86 crore in the same period a year ago, GlaxoSmithKline Pharmaceuticals said in a BSE filing.
The company follows January-December financial year.
"The quarter continued to see the impact of the base effect of differential pricing cuts due to price control order, extending coverage to the National List of Essential Medicines (NLEM)," the company said.
Last year, Department of Pharmaceuticals had notified the Drugs (Prices Control) Order 2013 under which prices of 348 medicines in the NLEM have been brought under price control, thus replacing an earlier order of 1995 that regulated prices of only 74 bulk drugs.
Shares of GlaxoSmithKline Pharma were trading 0.84 per cent down at Rs 2,473.85 apiece during afternoon trade on the BSE.