BackBiocon shares fall over 6% as net profit rises just 9.57%
The company posts 9.57% growth in net profit at Rs103 crore; sales rise 3% to rs742 crore
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Mumbai: Biocon Ltd shares fell as much as 6.3% on Friday after the company said on Thursday that it posted 9.57% growth in net profit at ₹ 103 crore in the June quarter as against 94 crore a year ago. Its sales rose just 3% to ₹ 742 crore during the quarter. Biocon’s results were below market expectations as analysts had projected higher growth.
“Our revenue growth this quarter has been muted. Our business performance reflects the challenges that we are temporarily facing in some of our key markets especially in the Middle East. We are working towards diversifying our regional dependencies to diminish the impact of such externalities," said chairman and managing director Kiran Mazumdar-Shaw in a note on Thursday.
However she added that “the company has sustained its operating margins and profits despite increase in costs".
Shares of Biocon were trading 5.4% lower at ₹ 488.95 apiece at 11:34am on Friday, while the benchmark Sensex was down 0.37% at 26,174.92.
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