Shares of Piramal Pharma plunged nearly 13% in early trading on Thursday after the company reported weak earnings for the December 2022 quarter.

The pharmaceutical company, majority-owned by Piramal Group led by Ajay Piramal, reported a year-on-year loss of Rs 90.18 crore in the third quarter of the current fiscal, compared to a net profit of Rs 163.37 crore in the same period last year.

The stock was trading down 10% at Rs 88.85 per share on the NSE at 12:02 pm.

The company reported operating income rose 11% year-on-year to Rs 1,716 crore, while gross margin fell 90 basis points to 64% due to changes in product mix.

Reported consolidated net loss of Rs 90 crore was down 155% year-on-year from Rs 163 crore reported in the same period last year.

EBITDA for the quarter was Rs 170 crore, down 56% year-on-year. The EBITDA margin was 10%, down 1,500 basis points due to high operating expenses, including raw material costs, energy prices, rising wages and marketing costs.

The company’s board of directors on February 6 approved the allotment of equity shares worth Rs 1,050 crore through a rights issue.