Shares of Larsen & Toubro today slumped by 6 per cent after the company reported 6.9 per cent decline in standalone net profit for the fourth quarter ended March, 2013.
The infrastructure conglomerate’s scrip tanked over 6 per cent to Rs 1,503 in intra—day trade and finally ended the day at Rs 1,517.10, down 5.57 per cent on the BSE.
At NSE, the scrip settled 6.05 per cent lower at Rs 1,508.40.
The stock was the top loser on both Sensex as well as Nifty.
“Higher finance costs resulted in disappointment in L&T results,” said Milan Bavishi, Head Research, Inventure Growth and Securities.
Larsen & Toubro today reported 6.90 per cent decline in standalone net profit at Rs 1,787.94 crore for the fourth quarter ended March, 2013, due to a sharp rise in interest outgo.
The company had reported a net profit of Rs 1,920.41 crore for the corresponding quarter of 2011—12.
Net sales of the company were up nearly 10 per cent at Rs 20,293.83 crore during the quarter vis—a—vis Rs 18,460.90 crore of the fourth quarter of FY12, it said in a filing to the BSE.
However, it reported 132 per cent rise in finance costs at Rs 280.99 crore during the quarter as against Rs 121.09 crore in fourth quarter of FY12, affecting L&T’s profitability during the January—March period.