Domestic formulations sales impacted due to GST transition
RPG Life Sciences, a part of the Rs 22,000 crore RPG Enterprises, has announced its unaudited financial results for the quarter ending June 30, 2017.
The company, engaged in manufacturing and marketing of pharmaceutical products, posted a reduction in profit before tax of 94 per cent to stand at Rs 0.47 crore as against Rs 8.02 crore posted in Q1FY17. Revenue from operations stood at Rs 78.51 crore as against Rs 82.59 crore for the corresponding quarter of previous year.
“This past quarter we witnessed a plunge in inventory from 38 days to 24 days. This was led by government’s announcement of rolling out a revolutionary reform in the Indian Taxation System – Goods and Services Tax (GST). Despite these two accounts, we have held ground. We had anticipated an impact on our business because of GST implementation. We are confident that we will be able to offset the losses made in the past two quarters gradually this year. We have already started witnessing signs of revival in the month of July and we are affirmative that Q2 will bring in respite,” said CT Renganathan, MD, RPG Life Sciences.
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