| The L&T stock fell by 8.68 per cent and closed at Rs 2,728.80 on the Bombay Stock Exchange, exacerbated by the early decline in the market. |
| L&T International FZE, a Sharjah (United Arab Emirates)-based arm of L&T, may post a loss of Rs 200 crore because it bet against a decline in prices of zinc and other commodities, L&T Chief Financial Officer YM Deosthalee told BS. The disclosure came after television channels reported a brokerage call on the issue. |
| ''We have a large exposure to commodities. We have an order book of $6 billion and we buy 30 to 40 per cent of the commodities. We had started some kind of hedging three years ago. The exposure has been reduced,'' Deosthalee added. |
| Zinc prices fell 44 per cent last year, the first annual decline in five years. The London Metal Exchange index of six primary metals fell to a 17-month low in December. |
| ''The amount of losses was a surprise as well as the manner in which the disclosure was made,'' said an analyst who tracks L&T for an FII. |
| The Sharjah unit had posted a profit of Rs 150 crore in the year ended March 31, 2007. The loss will not alter the forecast for sales or margins for the year. ''Operating margins may improve this year,'' Deosthalee said. |
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