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Shares of Glenmark Pharmaceuticals tumbled nearly 7 per cent today after the company’s net profit declined 46.7 per cent in the quarter ended December 31, 2011.
Reacting to the weak numbers, the scrip opened the day on a weak note and later lost 6.64 per cent to Rs 291.40 on the BSE. Defying the strong market, the shares fell 6.81 per cent to Rs 290.55 on the NSE also.
“The company’s Q3 FY’12 results missed our estimates primarily on lower margins. We expect negative stock reaction in the near-term on Q3 margin disappointment,” Nomura said in a report.
Glenmark’s consolidated net profit declined 46.70 per cent to Rs 46.11 crore for the quarter ended December 31, 2011 over the same period last fiscal due to forex loss. Net profit for the quarter ended December 31, 2010 was at Rs 86.52 crore, Glenmark Pharmaceuticals said in a statement.
The company said it took a hit of Rs 102 crore on dollar denominated loans due to rupee depreciation.
The fall in the stock was in contrast with the bullish stock market, where the BSE benchmark Sensex was trading 187.54 points higher at 17,050.84 in the noon session.
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