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Glaxo India sees real estate sale income in Q2

Glaxo India, the country's leading drugmaker by market share, expects to report other income from a sale of real estate in the second quarter of 2001, a spokesman said on Wednesday.

He said the company had signed an agreement to sell a factory warehouse in Bombay to private sector bank HSBC India on March 29 for Rs 400 million.

"We expect the approvals to come through in May, and the numbers are likely to reflect in the results for the second quarter ended June," the spokesman said.

He did not give a figure for the profit on the deal or how much tax would be paid on the income.

HSBC had been leasing the space from Glaxo for the past two years for about Rs 5.5 million a year, he said.

In 1999, Glaxo made an extraordinary net income of Rs 218.7 million from a real estate sale.

Glaxo, owned 51 per cent by Britain's GlaxoSmithKline Plc, releases its January-March results on April 27.

The firm posted an 8.5 per cent fall in profit for calendar 2000 at Rs 705.4 million on a 5.5 per cent rise in sales to Rs 9.35 billion.

Glaxo shares were up 3.09 per cent at 415.20 in afternoon trade, while the Sensex was up 3.08 per cent.

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