The dismal performance was the result of additional customs duty imposed by the Union government on some of its products. At present, the company pays a duty of 38.5 per cent against 0 per cent earlier on its Hepatitis B vaccine, according to SmithKline Beecham Pharmaceuticals managing director John Squires.

In addition to this, the recent mandated reduction in the prices of a few drug brands due to the Centre's notification also had a negative impact on the company's bottom line. As long as this policy continues, the impact is likely to continue.

The bourses have also reacted to the poor performance with the scrip plummeting to Rs 365.75 at the BSE on Thursday against an opening of Rs 397.50. The company's 52-week high and low was Rs 657 and Rs 304 respectively.

During the quarter, the net sales, services and other income stand at Rs 77.98 crore (Rs 72.95 crore), a marginal increase of 6.89 per cent over the corresponding period previous year. Total expenditure was up at Rs 67.95 crore (Rs 53.58 crore). Profit before interest, depreciation and taxation was Rs 10.02 crore (Rs 19.36 crore). The provision for taxation and depreciation were Rs 3.11 crore (Rs 6.64 crore) and Rs 87.27 lakh (Rs 43.92 lakh) respectively.

For the nine-month period ended September 30, 1999, SmithKline Beecham Pharma reported a net profit of Rs 19.19 crore (Rs 26.86 crore). Net sales, services and other income during the period increased to Rs 263 crore from Rs 232.11 crore.

Income of the company from sales and services was Rs 254.49 crore (Rs 225.73 crore) and Rs 3.05 crore (Rs 2.70 crore) respectively. Total expenditure went up at Rs 232.30 crore (Rs 189.85 crore), while interest paid during the period was Rs 84.30 lakh (Rs 17.11 lakh).

During the last year, the company had registered a net profit of Rs 33.26 crore on a total turnover of Rs 308.58 crore.