Shares of pharma major Cipla today tumbled over 7 per cent after the company’s March quarter numbers came below market expectations.
The stock tanked 7.4 per cent to Rs 458.25 — its 52-week low — on the BSE.
On the NSE, it dipped 7.4 per cent to touch a one-year low of Rs 457.45.
The stock was the worst performer among the blue-chips on both Sensex and Nifty during the morning trade.
“The company posted results much below expectations,” Angel Broking, V-P, Research-Pharma, Sarabjit Kour Nangra, said.
Cipla had yesterday reported a consolidated net profit of Rs 80.87 crore for the fourth quarter ended March 31, 2016.
The company had posted a net profit after minority interest and share of profit/loss of the associates of Rs 259.66 crore in the corresponding period of the previous fiscal, Cipla had said in a BSE filing.
Consolidated total income from operations of the company stood at Rs 3,266.54 crore during the quarter under consideration. It was Rs 3,092.69 crore in the year-ago period.
“The company’s wholly owned subsidiary acquired 100 per cent stake in two US-based companies, InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc. Both became company’s wholly owned subsidiaries from February 17, 2016,” Cipla said.
The results of the current period include relevant results of InvaGen and Exelan from the date they became subsidiaries of the company and “therefore the corresponding figures for the previous period are not comparable”, it added.
The company has posted a net profit of Rs 1,505.92 crore for the fiscal year ended March 31, 2016. It was Rs 1,180.77 crore in the same period a year-ago.
TechM stocks spurt
Shares of software exporter Tech Mahindra today soared over 14 per cent after the company reported a 90 per cent jump in profit for the March quarter.
The stock jumped 14.34 per cent to Rs 548 on the BSE.
On the NSE, shares of the country’s fifth largest software exporter zoomed 10.77 per cent to Rs 532.
Tech Mahindra had yesterday reported a 90 per cent jump in post-tax profit for the three months to March at Rs 897 crore on wider margins from an expanded revenue base, forex gains and lower tax payout.
The company had posted a net profit of Rs 472 crore in the corresponding quarter in the previous fiscal.
While its total revenues grew to Rs 6,883 crore from Rs 6,116 crore a year ago, its pre-tax profit margin expanded to 17 per cent from 15.4 per cent, lifting the bottomline for the reporting period.
For the full year ended March, the company’s net income rose 18.7 per cent to Rs 3,118 crore, while revenues were up 17.1 per cent at Rs 26,494 crore.
VRL Logistics plummets
Continuing its downtrend for the second straight session today, shares of VRL Logistics plunged nearly 20 per cent amid worries over its promoters’ proposed investment in regional airline venture and its impact on the firm’s balance sheet.
The stock nosedived 19.7 per cent to Rs 253, its 52-week low level, on the BSE.
On the NSE, it tanked 20 per cent to hit a one-year low of Rs 251.80.
VRL Logistics’ promoters had said yesterday that the proposed regional airline venture would be a “personal investment” of Rs 1,400 crore and would not impact the firm’s balance sheet.
In a release, the company’s Chairman Vijay Sankeshwar also emphasised that he would primarily play the role of a financial sponsor for the planned airline business.
The clarification came against the backdrop of shares of VRL Logistics tumbling 18 per cent to close at Rs 315.10 on the BSE yesterday.
“I wish to clarify that the proposed entry into airline business is a personal investment and at no point do we anticipate VRL’s balance sheet being used for the venture,” Sankeshwar said in a release submitted by the company to the stock exchanges.
Ruchi Soya tumbles
Shares of Ruchi Soya Industries tumbled 15 per cent in early trade today after SEBI barred the company from the securities market for alleged fraudulent activities in trading of castor seeds.
The scrip, which opened at Rs 20, plunged nearly 15 per cent to Rs 18.80 on the BSE. It had closed at Rs 22.05 on Tuesday.
On the NSE too, the company’s shares fell 15 per cent to Rs 18.80 and had touched a low of Rs 17.80. It opened at Rs 19.95 after closing at Rs 22.10 yesterday.
The Securities Exchange and Board of India (SEBI) has banned Ruchi Soya Industries and National Steel and Agro Industries from the securities market for alleged fraudulent and manipulative trading in castor seeds at NCDEX.
Shares of National Steel slumped five per cent to Rs 11.26 on the BSE. Similar trends were seen on the NSE as the scrip dropped to Rs 11.25 in early morning trade.
The two companies have been barred from “buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further directions”, SEBI said on Tuesday.
In his order, SEBI Whole Time Member Rajeev Kumar Agarwal said that prima facie the acts and omissions of Ruchi Soya Industries and National Steel and Agro Industries have not only disturbed the market equilibrium but also indicate manipulative and fraudulent design to form a cartel and corner the castor seed market.