Disappointing Q1 earnings: L&T emerges top Sensex loser in early trade

Shares of engineering & construction firm Larsen & Toubro (L&T) emerged as the biggest loser in the Sensex, dropping nearly 5 percent intra-day to touch a low of Rs 1,710.20, after the company missed analysts estimates in the first quarter earnings announced on Friday. The infrastructure bellwether company reported a 37.3 percent fall in consolidated net profit at Rs 606.20 crore in the quarter ended 30 June 2015, compared with Rs 966.90 crore reported in the same quarter a year ago. Consolidated revenue rose 6.7 percent to Rs 20,252.20 crore from Rs 18,975.80 crore a year ago. [caption id=“attachment_2376314” align=“alignleft” width=“380”]  Reuters[/caption] “International revenue during the quarter at Rs 6,609 crore constituted 32 percent of total revenue,” said the company in its filing to the BSE. As per the average of estimates of analysts polled by CNBC-TV18, L&T’s profit was expected to come at Rs 830 crore and revenue of Rs 20,066 crore in the first quarter. Key risks will be lower-than-expected domestic order inflows on weaker reforms coupled with sharp overseas ordering slowdown, leading to overall order inflow disappointment, Emkay Global Financial Services said in a report. At 10.30 am, L&T stock, recouped some of its losses and was trading at Rs 1,755.85, down 1.9 percent from the previous close, even as the benchmark Sensex was up 98 points at 28,213.01. Nearly 1.25 lakh shares changed hands on the BSE so far. Over the past one month, the stock traded extremely flat on the bourses, falling a meagre 1.1 percent in a market that exhibited sharp volatility during the period.