The Q1 results
season drew to a close with results widely affected by preparations for the
introduction of nationwide GST on July 1st, including production
cuts and widespread inventory selloffs. The Healthcare sector continued to
disappoint with price pressures intensifying for generics in the US and
domestic sales affected by evolving pricing policy aimed at cutting the cost of
medications. Lupin reported sales down
by 11.76% and profits down by 5.9%. Torrent Pharma reported sales down by 10.9%
and profits by 35.6%. Heidelberg Cement faced production pressures from
restricted supply of sand and aggregates in Uttar Pradesh with sales down by
6.6% and profits down by 3.9%. Indian Hotels reported revenues ahead by just
over 1% while profits fell by 19%.
Boosted by a strengthening order book at improving margins, Kalpataru
Power reported a 1.4% increase in sales and 9% in profits. VIP Industries
reported an increase of 9% in sales and 30% in profits. Finally, Indraprashtha
Gas reported a 16% increase in sales and 9% in profits.