Shares of RPG Life Sciences were locked in the upper circuit band of 20 per cent at Rs 255 on the BSE on Thursday after the company’s profit before tax (PBT) jumped four-fold to Rs 12.04 crore in the September quarter of FY20 (Q2FY20). The company, engaged in manufacturing and marketing of pharmaceutical products, had a PBT of Rs 3.1 crore in the year ago quarter.
Meanwhile, operational revenue during the quarter grew 8.8 per cent at Rs 98.49 crore, as against Rs 90.5 crore in the corresponding quarter of the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation) margin, too, improved to 16.7 per cent from 8.7 per cent YoY.
The management attributed the turnaround performance to focus on prescription demand generation, sales force effectiveness, product portfolio augmentation, sales health/ hygiene and operational excellence (OPEX) control.
"Domestic formulation business will continue to be the biggest contributor to the company performance and drive growth," it added.
The counter witnessed huge trading volumes with a combined 128,619 shares changing hands on the NSE and BSE till 09.35 am. There were pending buy orders for a combined 106,124 shares on both the exchanges. Average sub 50,000 shares were traded in past two weeks.