Market Movers: Dr Lal Pathlabs goes red; Bharat Rasayan unit catches fire

NEW DELHI: Shares of Dr Lal Pathlabs turned red on Wednesday after it reported a sharp drop in net profits for the March quarter. The company said its profit fell 27 per cent.

Operating revenue increased by 12.7 per cent in Q4FY22 to Rs 485.5 crore. Covid and allied contributed 13.6 per cent to revenue in Q4. Normalised EBITDA (after adjustment for stock-based compensation, CSR) for the period was at Rs 130.7 crore (margins 26.9 per cent) versus Rs 129.5 crore in the same quarter last year.

The company said PBT stood at Rs 83.5 crore in Q4FY22 against Rs 110.8 crore in Q4 last year. PAT was at Rs 62.1 crore against Rs 85.1 crore in Q4 last year.

The stock fell 6 per cent to Rs 2,053.

Bharat Rasayan catches fire
The company in a regulatory filing said a fire occurred at one Block of our Plant situated in Dahej, District Bharuch, Gujarat today. The cause of the fire is under investigation. At the time of submitting this intimation, efforts are continuing to control the fire with the help of Fire Brigade.

“8-10 people onsite have sustained injuries and are receiving treatment at the local hospital. Our company has full insurance coverage for this and has informed the insurance company about the incident,” the firm said.

However, the investors were not assuaged by this. The stock eventually fell 4 per cent to Rs 11,851.

Stake buy?
Shares of YES Bank found new vigour on Wednesday after reports said Carlyle and Advent are in talks to buy stake in the private lender. CNBCTV-18 reported that the stake sale will help bank boost capital.

The news channel also reported Cerberus and JC Flowers are in talks to buy 80 per cent in YES Bank’s asset reconstruction company (ARC). Both investors may pay 15 per cent of the asset value.

will transfer Rs 50,000 crore worth of bad debt to the ARC, and it will hold 20 per cent stake in the same, according to the report.

The stock rose over 4 per cent following the reportage.