Unichem Labs drops on weak Q3 earnings

Net profit for the Oct-Dec quarter slumped 97% on higher raw material, employee benefits and other expenses

Shares of Unichem Laboratories were down over 5% at Rs 220 after the company reported weak third quarter earnings on the back of higher raw material, employee benefits costs and other expenses.

Net profit for the third quarter ended December 31, 2014 slumped 97% to Rs 2 crore compared with Rs 74 crore, the company said in a release.

Cost of raw material increased 12% to Rs 77 crore, Employee benefits expense was 23% higher at Rs 49 crore while other expenses rose 19% to Rs 102 crore.

Further, net sales were marginally lower at Rs 262.89 crore compared with Rs 263.03 crore in the quarter ended December 31, 2013.

The stock opened at Rs 234 and touched a low of Rs 230. At 10AM, over 90,000 shares were traded on both the stock exchanges so far.