Akums Drugs and Pharmaceuticals Ltd shares fell beyond 5 percent on Wednesday, January 22, following reports of income tax department conducting search at Akums Drugs' offices and units.
Akums Drugs and Pharmaceuticals Ltd shares are currently trading at Rs 593.20 apiece, down by 5.19 percent.
Akums Drugs clarified that the business operations are continuing as usual.
"At Akums, we uphold the highest standards of transparency, honesty, and fairness in all our operations. Our procedures and documentation strictly adhere to legal and regulatory requirements, ensuring complete compliance and fostering trust among stakeholders. While the matter remains under review, we have fully cooperated with the Department and are committed to supporting the process. We want to assure that our daily operations remain unaffected, and we continue to serve our partners, customers, and stakeholders with unwavering dedication. As a law-abiding organisation, Akums continues to follow legal and corporate governance practices, reinforcing our commitment to integrity and excellence. We remain committed to driving our organisation's growth and creating value for all stakeholders while upholding the principles that define us," said the company.
In its last update on Q2 results for FY2025, Akums reported a significant decline in financial performance, with total income falling to Rs 1,033.09 crore, a decrease of 51.97 percent. Operating profit also saw a sharp drop of 53.33 percent, totaling Rs 90.02 crore. On a positive note, Akums achieved an operating margin of 8.71 percent, marking a remarkable increase of 171.36 percent, reflecting improved operational efficiency despite the challenges.
A month ago, Akums Drugs had signed up for a 'strategic collaboration' with a leading global pharma company to supply select oral liquid formulations to the European market. After an initial spurt following the announcement on December 24, the shares fell by more than 2% in the trading session. Akums Drugs share price were higher by over 4.33% from previous day's closing price on December 23.
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