L&T tanks on disappointing Q1

L&T is currently the top loser on the BSE, down by a big 7% at Rs.1532 with an intra day low at Rs.1513.Volumes are up almost 3 times.

The stock price has tumbled, reacting to its Q1FY15 numbers. On the face of it, it looks like the company has ended the quarter with a YoY bumper rise in profit – consolidated net profit came in at Rs.967 crore, up 111% though net sales rose comparatively slower at 10%, coming in at Rs.18,975 crore. Sifting a bit into the internals shows that it was the exceptional gain of Rs.249 crore which truly helped, made on divestment of its stake in City Union Bank and L&T Finance Holdings. Sequentially, net profit for the quarter was down 66%.

The only solace was that in terms of fresh orders, it bagged new orders worth Rs.33,408 crore during the current Q1, which is a 11% YoY and up 15% QoQ. Yet, overall the market is very unhappy with the numbers at the moment and has decided to react by selling.