Larsen & Toubro shares tank nearly 5 per cent after Q2 earnings

NEW DELHI: Shares of Larsen & Toubro (L&T) on Thursday tanked nearly 5 per cent after the company posted a 45 per cent decline in consolidated net profit for the quarter ended September.

The stock plunged 4.88 per cent to Rs 935.55 on the BSE. On the NSE, it tanked 4.85 per cent to Rs 935.10.

The engineering and construction giant on Wednesday posted a 45 per cent decline in consolidated net profit to Rs 1,410.29 crore for the quarter ended September, hit by the COVID-19 pandemic.

The company had clocked a net profit of Rs 2,551.67 crore in the year-ago period, it said in a regulatory filing.

"Net profit after tax (PAT) and share in profit / (loss) of joint ventures / associates from continuing operations before exceptional items for the quarter is at Rs 1,410 crore, registering a sequential improvement of nearly 4 times reflecting pickup in the business momentum.

"However, the impact of pandemic in terms of lower revenue, higher credit provisions in the financial services business and disruption of the Metro services, led to decline of 45 per cent vis-a-vis reported PAT of corresponding quarter of the previous year at Rs 2,552 crore," the company said in a statement.

Total consolidated income fell to Rs 31,593.77 crore in July-September quarter, from Rs 35,924.89 crore in the year-ago period.