Sanofi India Shares Fall 4% After Weak December Quarter Earnings
Shares of Sanofi India Ltd. declined sharply at the opening bell on Thursday, February 16, falling as much as 4% after the company reported weak financial performance for the December quarter.Net Profit Drops 32% Year on Year
For the quarter, the pharmaceutical company posted a 32% year on year decline in net profit at ₹61.7 crore, compared to ₹91.3 crore in the same period last year. The sharp contraction in earnings reflects continued pressure on the company’s profitability during the reporting period.Revenue Slides for Third Straight Quarter
Quarterly revenue also declined, falling 18% to ₹420 crore from ₹515 crore a year earlier. The latest performance marks the third consecutive quarter of declining revenue growth, indicating sustained weakness in topline momentum.The continued fall in revenue has weighed on overall financial performance, as the company struggles to regain growth traction.
Operating Margins Hit Lowest Level Since December 2023
Operating margins narrowed during the quarter, declining by 130 basis points to 21.6%, compared to 22.9% in the corresponding quarter of the previous year.The margin level recorded during the December quarter is the lowest since December 2023, underscoring ongoing pressure on operational efficiency.
The combination of lower revenue, shrinking margins, and a sharp decline in profit led to negative market reaction, with the stock opening significantly lower in early trade.
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