Shares of Shilpa Medicare fell 5% in early trading on May 26, as the drugmaker reported disappointing earnings for Q3FY22-23.

The drugmaker posted a net loss of Rs 8.1 crore in the fourth quarter, compared to a net profit of Rs 29.5 crore in the corresponding period of the previous fiscal.

This was as revenue fell 22.6% year-on-year to Rs 263.6 crore from Rs 340.6 crore in the year-ago period. The revenue weakness can be attributed to pricing pressure and lower revenues in the Oncology and CRAM (Contract Research and Manufacturing Services) segments.

Pricing pressure also dented the company’s operating performance, as EBITDA margins contracted sharply to 14.5% from 21.6% in Q4FY22.

Shilpa Medicare was trading at Rs 236.50 on the National Stock Exchange at 10:33 am, down 3.29% from the previous close. Trading volume also jumped, as 2 lakh shares changed hands on exchanges, compared with the previous session’s average of 1 lakh shares.

Management said it expected downward price pressure on key products to continue, but assured investors that the company was working to alleviate that pressure through more efficient manufacturing and focusing on complex products with specific strengths.

The stock has underperformed recently, posting negative returns over the past one-year and three-year periods. Much of the stock’s weakness has been due to its poor financial performance. The company posted a net loss in three of the four quarters in FY23.