Shares of Larsen & Toubro dropped by nearly 3 per cent Monday after the company's March quarter earnings fell short of market expectations.
The scrip declined 2.81 per cent to close at Rs 1,317.20 on the BSE. During the day, it dropped 3.33 per cent to Rs 1,310.
At the NSE, shares closed 2.75 per cent lower at Rs 1,318.20.
In terms of volume, 2.10 lakh shares were traded on the BSE during the day, while over 34 lakh shares were traded on the NSE.
The company's declared its earnings post market hours on Friday.
It reported a 7.9 per cent rise in its consolidated profit after tax (PAT) at Rs 3,418.24 crore for the quarter ended March 2019.
Its PAT stood at Rs 3,167.47 crore during the corresponding quarter a year ago, according to a BSE filing.
Consolidated income in the said quarter increased to Rs 45,555.29 crore from Rs 41,091.04 crore in January-March 2018.
"L&T's January-March 2018-19 consolidated revenue grew over 10 per cent yoy and PAT grew 8 per cent yoy. While the headline results were in line with consensus estimates, EBITDA margins at 12.5 per cent were below estimates," as per a report by Centrum Broking Research.
On the outlook, the company said with India undergoing general elections in the first quarter of the new fiscal, the disruptions in decision making processes could impact key operating parameters in the first half of 2019-20.
"Larsen & Toubro (L&T) met 2018-19 guidance on orders; however, January-March 2018-19 operating margin missed estimate," as per a report by Edelweiss Research.
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