Cipla posted a 15.2% rise in its net profit for the second quarter of the financial year, though shares were still in the red on Tuesday.

What Happened: India’s third-largest pharmaceutical company said its net profit attributable to owners came in at ₹1,302.53 crore for the quarter ended September, compared with the ₹1,130.91 crore it earned in the same period last year. This was ahead of analyst expectations of ₹1,189 crore, based on an average of four brokerages.

The pharma giant posted a revenue from the sale of products of ₹6,961.22 crore, up 5.6% from a topline of ₹6,589.22 crore it posted a year ago. The figure was in line with analyst estimates of ₹6,990 crore.

The company’s EBITDA for the quarter went up 12% to ₹1,886 crore, while its EBITDA margin came in at 26.7% of revenue.

See Also: Swiggy’s ₹11,700 Cr IPO Opens Nov 6, Aims For Half of Rival Zomato’s Valuation

The drugmaker, which makes a major chunk of its money in the North American market, had few major drug launches in the US during the quarter while also dealing with regulatory hurdles. Two of Cipla’s key upcoming launches are entangled in regulatory issues, squeezing its drug pipeline and possibly revenue and profit growth.

Analysts had also expected some negative impact in the first two months of Q2 due to a transition in the trade generics model in the previous quarter.

The pharma major’s domestic revenue grew 5% to ₹2,948 crore, while its North America business also clocked a modest 5% topline growth to ₹1,986 crore. The firm’s Africa business reported a 24% growth in turnover to ₹1,068 crore.

Price Action: Cipla’s shares were down 1.66% at ₹1,478.20 in afternoon trade on Tuesday. The stock has gained nearly 18% so far this year.

Read Next: India Dominates Global IPO Market With 36% Share In Q3, Surpassing US