RPG Life Sciences posts 94% decline in Q1 net at Rs 43 lakh

Pharma firm RPG Life Sciences Ltd today reported a 94 per cent decline in net profit at Rs 43 lakh in the first quarter ended June 30 from Rs 9.03 crore in the same period last year.
Revenue from operations in Q1 stood at Rs 78.51 crore, down from Rs 82.59 crore in the corresponding quarter of the previous year.
The company, a part of the Rs 22,000 crore RPG Enterprises, said the domestic formulations sales impacted due to GST transition.
"This past quarter we witnessed a plunge in inventory from 38 days to 24 days. This was led by the government's announcement of rolling out a revolutionary reform in Goods and Services Tax (GST).

"Despite these two accounts, we have held ground. We had anticipated an impact on our business because of the GST implementation," said RPG Life Sciences managing director C T Renganathan in a statement.
"We are confident we will be able to offset the losses made in the past two quarters gradually this year. We started witnessing signs of revival in the month of July and we are affirmative that Q2 will bring in respite," he said.
RPG Life Sciences is an integrated pharmaceutical company operating in the domestic and international markets in the branded formulations, global generics and synthetic APIs space.

The company is a research-based pharmaceutical company, producing a wide range of quality, affordable medicines. Its brands are highly trusted by healthcare professionals and patients.