Waaree Renewable Technologies Ltd. shares fell as much as 6.4% on Wednesday after the company reported a lower operating margin for the June quarter, even as revenue and profit increased from a year earlier.
The stock declined to Rs 954, marking its biggest intraday fall in nearly five months. Trading activity also picked up sharply, with volume running at almost eight times the 20-day average for the same time of day, according to Bloomberg.
The move came after the company reported year-on-year growth in revenue, operating profit and net profit for the first quarter, while its operating margin narrowed.
For the quarter ended June, consolidated revenue rose 53.2% to Rs 924 crore from Rs 603 crore a year earlier. Earnings before interest, taxes, depreciation and amortisation, or Ebitda, increased 47.6% to Rs 174 crore from Rs 118 crore.
However, the Ebitda margin contracted to 18.8% from 19.5% in the corresponding quarter last year.
Consolidated net profit increased 34.1% to Rs 116 crore, compared with Rs 86.4 crore in the year-ago period.
The quarterly results showed that while the company delivered higher sales and earnings, the pace of EBITDA growth lagged revenue growth, resulting in a lower operating margin.
Bloomberg data showed trading volumes were almost eight times the stock's 20-day average for this time of day.
The stock has declined about 14% over the past 52 weeks, according to Bloomberg data. It was down 4% over the last five trading days and had fallen 2% over the past 30 days.
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