Hikal stock price slipped more than 5 percent in the morning trade after the Gujarat Pollution Control Board (GPCB) asked the pharma company to close operations at its plant in Bharuch for the alleged violation of environmental norms.
GPCB directed Hikal to cease operations of the plant at GIDC Panoli within 15 days for the alleged violations of certain provisions of Environment (Protection) Act, 1986.
Hikal takes environmental compliance with the utmost seriousness, and recognise the significance of adherence to regulations and maintaining ecological harmony, the company said in a statement to the media.
“We wish to assure our stakeholders that we are taking immediate and appropriate measures to address the concerns raised by the regulatory authorities,” it said.
The company was engaged with the GPCB to understand the reasons behind the direction and to seek a resolution, the company said in its press release.
“We firmly believe that the closure direction is subject to reconsideration, and we have expressed our stance on the matter to the relevant authorities,” it said.
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In the March quarter, the company reported a 74 percent year on year rise in net profit at Rs 36 crore. Total revenue reached Rs 545 crore, marking a 9 percent increase from Rs 502 crore in the corresponding period of the previous fiscal year.
At the operating level, earnings before interest, tax, depreciation, and amortization saw a jump of 48 percent to Rs 90 crore from Rs 61 crore during the same period of the previous year.
At 9.49 am, the stock was trading at Rs 285.55 on the National Stock Exchange, down 5.57 percent from the previous close.
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