L&T tanks 8% post June quarter earnings

Larsen and Toubro (L&T) has tanked  nearly 8% to Rs 1,512 on National Stock Exchange after reporting the consolidated net profit of Rs 967 crore for the quarter ended June 2014 (Q1), mainly on account of one-time gain of Rs 249 crore on disinvestments and stake sale in one of its project.

The company had reported a net profit of Rs 459 crore in the corresponding quarter of last fiscal and Rs 2,840 crore in March quarter.

Its revenues for the quarter under review increased 10% to Rs 18,975 crore from Rs 17,241 crore in the year-ago period.

The two-fold increase in net profit is a due to an expectational gain of Rs 249 crore on divestment of strategic investment in City Union Bank and stake sale in L&T Finance Holdings, which was listed in 2011.

The company bagged fresh orders worth Rs 33,408 crore during June quarter registering a y-o-y growth of 11%, compared to 15% growth recorded in March quarter.

At 0935 hours, the stock trading 5.4% lower at Rs 1,553 on NSE. A combined 3.53 million shares changed hands on the counter so far on NSE and BSE.