Cipla falls after Q3 earnings lag estimates

Shares in Cipla fell after company's December quarter profit fell by 16.5 per cent to Rs 284 crore, lagging some analysts estimates.

Cipla's operational margins for December-quarter at 18.1 per cent was lowest in nearly 11 quarters, weighed down by higher research and development expenditure and staff costs, analysts say.

Staff costs rose 56 per cent year-on-year and 11 per cent quarter-on-quarter. R&D spend at Rs 115 crore in Q3 also rose sharply.

Cipla shares traded down 3.3 per cent at 9.24 a.m. after earlier falling over 5 per cent to Rs 390. (Track stock)

(With inputs from Reuters)