L&T tanks on disappointing Q1 earnings
Q1 FY2014 net profit at Rs 756 crore against an average analyst estimates of Rs 934 crore on account of job mix, lower margin accruals and lower other income.
Larsen and Toubro (L&T) has tanked 7.4% to Rs 903 after reporting a 12.5% year-on-year (yoy) drop in its net profit at Rs 756 crore for the quarter ended June 30, 2013 (Q1) on account of job mix, lower margin accruals and lower other income. Analyst on an average had expected profit of Rs 934 crore from engineering major. The company had profit of Rs 864 crore in a year ago quarter. The slow execution was mainly on the back of poor performance in power and metallurgical segment.
“The company’s power segment has reported 38% yoy fall in profit before interest and tax for the quarter declined by 38% at Rs 98.52 crore against Rs 159.86 crore in a year ago quarter,” L&T said in a statement.
Net sale grew 5% at Rs 12,555 crore on yoy basis. On the EBITDA front, the company reported a yoy dip of 56bp to 8.5%, owing to lower-than-expected execution and high construction and sub contracting cost.
The stock opened at Rs 975 and hit a high of Rs 988 on BSE before the announcement of Q1 earnings. A combined 6.5 million shares have changed hands on the counter so far on BSE and NSE.
“The company’s power segment has reported 38% yoy fall in profit before interest and tax for the quarter declined by 38% at Rs 98.52 crore against Rs 159.86 crore in a year ago quarter,” L&T said in a statement.
Net sale grew 5% at Rs 12,555 crore on yoy basis. On the EBITDA front, the company reported a yoy dip of 56bp to 8.5%, owing to lower-than-expected execution and high construction and sub contracting cost.
The stock opened at Rs 975 and hit a high of Rs 988 on BSE before the announcement of Q1 earnings. A combined 6.5 million shares have changed hands on the counter so far on BSE and NSE.