MUMBAI (Commodity Online): India’s leading engineering solutions provider, Larsen & Toubro Ltd (BOM:500510) continued sliding on the Bombay Stock Exchange (BSE) on the back of dismal third quarter financial results.

Larsen & Toubro witnessed its first sales fall in seven years and cut its revenue growth target, causing the biggest fall in the stock in six months. The company has revised its revenue growth target to 10% for the current financial year, from 15% projected earlier, but maintained its order growth target at 30%.

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Company’s net profit was down by 50% to Rs.759 crore against Rs.1,520 crore because of lower extra-ordinary income posted in December. During the December quarter, the company posted a one-time gain of Rs.62.55 crore from proportionate reversal of the provision on sale of shares in Mahindra Satyam while the figure was Rs.916 crore from the sale of ready mix concrete business in the comparable previous period.

L&T CFO YM Deosthalee said the company’s outlook was bright as it saw big opportunities in power, nuclear energy and hydrocarbons in the coming year. The company has orders valued at Rs.91,100 crore. The operating margins rose to 12.5% from 11.2%, he said.

The L&T stock slipped 7% to close at Rs.1,524 on Thursday and continued trading in red on Friday as well. The stock prices fell by 4.23% to Rs.1459.80 in the morning trades, shedding by over 10% in past three trading sessions.

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