Biocon shares slump 5% on earnings disappointment

Shares in Biocon slumped after earnings disappointed some investors.

Biocon said on Wednesday its December-quarter consolidated net profit rose 14 per cent to Rs 105 crore.

Some analysts cited disappointment over operating margins, with Kotak Institutional Equities expressing concerns about research and development margins.

"R&D margin at 2.9 per cent is the lowest in the past several quarters, which raises concerns on sustainability of the margin improvement," it said in a report.

Investors are also locking profits after the stock jumped 8.5 per cent in the previous three sessions.

Biocon shares were trading down 5.2 per cent at 3 p.m.

Copyright Thomson Reuters 2014