Shares of Divis Laboratories fell 13% to a 29-month low of Rs 2,830 on the BSE in intraday trade on Friday, as the company disappointed investors with weak results for the December quarter (Q3FY23).

Shares of the pharmaceutical company were quoted at their lowest level since August 2020. In contrast, the S&P BSE Sensex rose 1% to 60,543 at 2:12 pm.

In Q3FY23, Divis Labs reported a 66% year-on-year decline in its consolidated net profit to Rs 306.8 crore on the higher-than-expected decrease in revenue. The company’s consolidated revenue fell 31.5% to Rs 1,707.68 crore, below analysts’ expectations of about Rs 1,888 crore.

EBITDA fell 63% year-on-year to Rs 408 crore from Rs 1,097 crore a year earlier. EBITDA margin contracted sharply to 23.9% from 44% in Q3FY22.

The company said that material consumption accounted for about 43% of sales in the quarter due to changes in product mix. The group manufactures active pharmaceutical ingredients (API), intermediates and nutraceutical ingredients.