Drug maker GlaxoSmithKline (GSK) Pharmaceuticals on Tuesday posted a 1.3% year-on-year rise in its net profit to Rs.138.5 crore for the quarter ended December against Rs.136.7 crore in the corresponding quarter of the previous year.

The muted profit rise was mainly due to an exceptional loss of Rs.30 crore due to rationalisation initiatives at a manufacturing site and increase in material cost.

“Growth was broad based across the company,” said Hasit Joshipura, MD, GSK Pharma–ceuticals.

“Mass markets grew well. Vaccines continued the growth momentum by growing ahead of the market. Mass Specialty and Specialty, both showed market competitive growth.”

Net sales rose 16% to Rs.656.69 crore against Rs.566 crore for the year-ago period.

The company said its board has recommended a dividend of Rs.50 per equity share for the year.

“If approved by the shareholders, the dividend will absorb Rs.424 crore,” said the company.

Shares closed at Rs.2,103, up 0.5% on the BSE.