Shares of Krsnaa Diagnostics faced a sharp decline of nearly 8 percent in early trading on November 6, following the company’s announcement of a significant drop in its net profit for the September quarter.
The diagnostic firm’s bottomline witnessed a substantial decrease of almost 32 percent on a year-on-year basis, plummeting to Rs 10.5 crore in comparison to the previous year’s Rs 15 crore. This decline in net profit was primarily attributed to elevated operational expenditure, arising from additional costs incurred in the onboarding of teams for the operation and management of newly established centers.
One of the key contributing factors to this decline was the higher operational expenditure incurred due to the onboarding of teams for the newly established centers’ operation and management. Consequently, the company’s EBITDA margin contracted significantly, falling to 21 percent in Q2 from the previous year’s 25 percent.
As of 11:16 am, shares of Krsnaa Diagnostics were trading 3.26 percent lower at ₹694.95 on the NSE, reflecting the market’s immediate response to the quarterly financial report.