Shares of Krsnaa Diagnostics were trading lower on Thursday, February 6, after the company reported a mixed set of Q3 results, with a sharp year-on-year decline in net profit despite modest growth in revenue and operating earnings. The stock slipped nearly 3% to Rs 700 on the NSE in early trade, as investors reacted to the weaker bottom-line performance.
For the December quarter, Krsnaa Diagnostics reported a 21.7% year-on-year decline in net profit to Rs 15.2 crore, compared with Rs 19.4 crore in the same period last year. The drop in profitability emerged as the key negative trigger for the stock, overshadowing the moderate improvement seen on the topline.
Revenue from operations during the quarter rose 3.8% YoY to Rs 181.2 crore, up from Rs 174.5 crore a year ago, indicating steady but unspectacular growth in business volumes. Operating performance also showed limited improvement, with EBITDA increasing 2.7% YoY to Rs 46.3 crore, compared with Rs 45.1 crore in Q3 of the previous financial year.
However, margins offered little comfort. EBITDA margin remained largely flat at 25.5%, marginally lower than 25.8% reported in the year-ago quarter. The combination of stable margins and slower EBITDA growth relative to revenue suggests that higher cost pressures offset incremental gains during the quarter, ultimately impacting net profit.
Market participants also appeared cautious as profit growth failed to keep pace with revenue expansion, raising concerns over near-term earnings visibility. While operational efficiency remained broadly intact, as reflected in stable margins, the disconnect between topline growth and bottom-line performance weighed on investor sentiment.
Krsnaa Diagnostics, which operates primarily in radiology and pathology services across its diagnostic network, announced its Q3 results after market hours. The stock’s decline today reflects a negative reaction to the profit miss, even as revenue and EBITDA posted modest growth during the quarter.
At the time of writing, Krsnaa Diagnostics was trading below its previous close of Rs 720.70, within a day range of Rs 685 to Rs 702.45, with a market capitalisation of around Rs 22,270 crore.
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