Cipla slips nearly 5% on weak Q3 numbers

Shares of Cipla today plummeted by nearly 5% in the early trade on the BSE, hit by a dip in the drug firm's third quarter net profit.

On Friday last week, the company had reported a 19.49% decline in its net profit to Rs 232.69 crore for the third quarter ended December 31, 2010, primarily due to high prices at its Indore plant and rupee appreciation.

Reacting to the muted numbers, shares of Cipla plunged by 4.84% to an intra-day low of Rs 308.50 a piece on the Bombay Stock Exchange (BSE).

Similarly, the scrip witnessed a plunge of 4.87 per cent to trade at Rs 308.50 in the morning session on the National Stock Exchange.

"Cipla reported dismal third quarter with growth on the domestic front tapering after strong second quarter and operational cost at Indore SEZ continues to hamper margins," a brokerage firm PINC said in a report.

Meanwhile, the 30-share benchmark Sensex was quoting at 18,079.85, up 71.70 points from previous close at 1117 hours.