Goods and Services Tax(GST) hit Century Plyboards India profitability amid higher sales, atleast in the short run resulting in a decline of 20.7 per cent in the FY18' Q1 net profit which was Rs 34.12 crore against Rs 43.05 crore in the corresponding period last year.
"There had been a hit in sales in June after tax dropped to 18 per cent from 28 per cent in laminates. On top of it there was raw material problems due to GST. Moreover, interest and depreciation were also high due to investment in new plants," Century Plyboards chairman Sajjan Bhajjanka told PTI.
"Under the circumtances we had satisfactory results. These (GST) are short term issues and the company is expecting to gain from the new taxation regime in the coming quarters," he said.
Net Revenue from operations for the June quarter was was Rs 438.60 crore, an increase of 8.1 per cent over corresponding period of last financial year sales of 405.75 crore, he added.
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