Shares of Suzlon Energy Ltd. and Premier Energies Ltd. fell over 2% on Thursday, extending the weakness across the renewable energy space after Waaree Energies' June-quarter results triggered a sharp selloff in the sector.
While Waaree Energies remained the biggest laggard, trading 5.35% lower at Rs 2,589.90, Premier Energies declined 3.47% to Rs 1,000.20, while Suzlon Energy slipped 2.36% to Rs 46.33 during morning trade.
On an intraday basis, the selling was even steeper. Waaree fell as much as 6.4% to Rs 2,561, Premier Energies touched a low of Rs 987, down 4.75%, while Suzlon slipped to an intraday low of Rs 46.22, a decline of 2.59%, according to NSE data.
The weakness came after Waaree Energies reported its June-quarter earnings, where investors focused on margin compression despite healthy growth in revenue and profit.
The company reported a sharp increase in raw material costs during the quarter, with cost of materials consumed rising 63.5% year-on-year to Rs 4,843.93 crore from Rs 2,962.43 crore a year ago. The jump in input costs weighed on operating profitability, raising concerns that margin pressures could persist if commodity prices remain elevated.
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