L&T Shares Plunge 4%, Mcap Drops Rs 21,064 Cr - News

New Delhi, Jan 31 (PTI) Shares of Larsen and Toubro (L&T) declined over 4 per cent, wiping out Rs 21,064.95 crore from its market valuation on Wednesday, as the company's December quarter earnings failed to meet market estimates.

The stock fell by 4.22 per cent to Rs 3,480.15 apiece on the BSE. During the day, it tanked 6.77 per cent to Rs 3,387.40.

On the NSE, it dropped 4.21 per cent to Rs 3,480 each.

The company's market capitalisation (mcap) eroded by Rs 21,064.95 crore to Rs 4,78,363.43 crore.

It was the biggest laggard among the Sensex and Nifty firms.

In volume terms, 3.64 lakh shares of the company were traded on the BSE and over 96.37 lakh shares on the NSE during the day.

Infrastructure major Larsen and Toubro on Tuesday posted a 15 per cent rise in consolidated profit after tax at Rs 2,947 crore in the December quarter on the back of higher income.

The company had posted a consolidated PAT (profit after tax) of Rs 2,552.92 crore in the year-ago period.

"LT's 3Q FY24 revenue beat our estimates, but lower-than-expected margins led to a miss in PAT," as per a report by Motilal Oswal Financial Services Ltd.

The consolidated income of the company in the October-December period increased to Rs 55,965.57 crore from Rs 47,144.75 crore in the year-ago period, L&T said in an exchange filing.

"L&T reported marginally weak set of results for 3Q FY24 as revenue came in 5 per cent ahead of our expectations while margins were 90bps lower and PAT 10 per cent below estimate. Order inflow and order backlog remains strong with strong contribution from international segment," according to a report by Centrum Broking.