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RPG Life Sciences advanced 3.79% to Rs 2188.80 after the company reported 64.3% increase in net profit to Rs 21.75 crore in Q4 FY25 from Rs 13.24 crore in Q4 FY25.

RPG Life edges higher after Q4 PAT rises 64% YoY to nearly Rs 22 crore

29-Apr-2025, 11:35

Net sales rose by 12.7% year-over-year (YoY) to Rs 143.09 crore during the period under review.

Total operating expenditure aggregated to Rs 117.60 crore in the quarter ended 31 March 2025, up by 10.7% YoY.

Recorded EBITDA margin expanded from 23.3% in Q4 FY25 to 26.4% in Q4 FY25.

In the March 2025 quarter, the company has recorded a profit of Rs 126.23 crore, which has resulted from assignment of surplus vacant leasehold land along with built-up structures situated at MIDC, Navi Mumbai.

During the quarter, a fire incident had occurred at the company's manufacturing unit located at Navi Mumbai. The company had recognized an initial loss of Rs 24.83 crore and a corresponding credit of the two tranches of interim payment from the insurance company of Rs 8.50 crore, resulting in net initial loss of Rs 16.33 crore.

These two items have resulted in the company recording a net exceptional gain of Rs 109.90 crore in Q4 FY25.

Accordingly, profit before tax in Q4 FY25 stood at Rs 134.90 crore, up by 660.4% from Rs 17.74 crore recorded in Q4 FY24. Tax outgo for the fourth quarter was Rs 17.48 crore, up 220.7% YoY.

RPG Life has reported 34.9% rise in net profit to Rs 118.26 crore on a 12.3% increase in net sales to Rs 653.43 crore in FY25 as compared with FY24.

Yugal Sikri, managing director, RPG Life Sciences, said: Thanks to our well-crafted transformation agenda, diligently pursued over the past five years, our first growth engine, Domestic Formulations business, has continued to register profitable and healthy growth consistently higher than the market. Thanks to our five pillar strategy, we are building brands, portfolios and therapies; increasing sales force productivity and nurturing strategic business assets.

We are quite on course in shaping our International Formulations and API businesses to emerge as second and third growth engines by way of modernisation of both our API and Formulations plants, setting up new R&D units, developing a strong product pipeline, by infusion of significant capex. The International Formulations business is registering healthy double-digit profitable growth, and the API business is also showing promising profitable growth.

Our structural approach of cost optimisation has helped us explore newer avenues in our operations to achieve cost efficiencies, thereby helping us to maintain our uninterrupted Y-o-Y margin expansion trajectory.

The company has built sizeable cash surplus of Rs 168 crore from operations as a result of continued remarkable business performance. Additional cash generated by assignment of surplus vacant leasehold land at our Navi Mumbai plant has further augmented the pool to Rs. 266 crore. We are actively pursuing inorganic opportunities to accelerate business growth.'

RPG Life Sciences, part of RPG Enterprises, 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.