Cipla has dipped 4% at Rs 328 after reporting lower-than-expected 16% year-on-year (y-o-y) growth in net profit at Rs 270 crore for the third quarter ended December 31, 2011, due to increase in staff cost and rise in selling expenses.
Analysts had expected India's third largest pharma company to post a net profit of around Rs 300 crore for the December quarter. Net sales grew 14% at Rs 1,711 crore on y-o-y basis.
“The increase in staff cost at Rs 52 crore or by 39% mainly due to annual increments as well as increase in manpower and is in line with the previous quarter,” the company said in a press release.
Other expenditure increased by 14%, largely on account of an increase in selling expenses, professional fees and factory expenditure such as repairs and maintenance, power and fuel, it added.
As many as 1.23 million shares have already changed hands on the counter on morning deals on the NSE and BSE.