A Study On Raw Material Price Fluctuations And Its Impact On Profitability With Special Reference To Aucklane Life Sciences Private Limited

Abstract

This Study Analyzes The Impact Of Raw Material Price Fluctuations On The Profitability Of Tablet Manufacturing Units, With Specific Reference To Aucklane Life Sciences Pvt. Ltd., Puducherry. In The Pharmaceutical Industry, Raw Materials Such As Active Pharmaceutical Ingredients (APIs), Excipients, And Packaging Materials Account For A Major Portion Of Production Costs, Making Profitability Highly Sensitive To Their Price Changes. The Research, Based On Secondary Data Over Five Years (2020–2024), Employs Trend Analysis, Ratio Analysis, And Regression Techniques To Examine The Relationship Between Raw Material Costs And Financial Performance Indicators Like Gross Profit, Net Profit, Operating Profit, And Return On Investment. The Findings Reveal That All Key Raw Materials Exhibited Consistent Price Increases, Significantly Affecting Production Costs And Profit Margins. While Gross Profit And Operating Profit Ratios Improved Due To Effective Cost Control, Net Profit Ratio And ROI Fluctuated, Indicating The Influence Of Rising Input Costs. Regression Results Confirmed A Strong Positive Correlation Between Raw Material Consumption And Net Sales, Proving That Sales Performance Is Closely Linked To Material Usage. The Study Concludes That Efficient Material Management, Supplier Diversification, Cost Control, And Long-term Procurement Strategies Are Vital For Maintaining Stable Profitability And Achieving Sustainable Growth In A Competitive Pharmaceutical Environment.

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