The media had reports that Larsen & Toubro Limited could incur loss of Rs 150 crore to Rs 200 crore from commodity hedging in the year ending March 2008 (FY 2008).
The National Stock Exchange Of India, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.
Larsen & Toubro Limited has vide its letter inter-alia stated, "We wish to clarify that during the year 2007-08, thre has been extreme volatility in the markets, especially in commodity prices. The Company has exposure in commodities and part of it is being hedged by it. As per the un-audited numbers, there could be a loss in commodity hedging of around Rs. 200 crore. The actual number will get crystalized on finalization of Accounts. We have reduced the exposures to a considerable extent. However, the Company maintains its guidance on order booking, sales and operating margins for the year with an emphasis on improvement in the operating margins." -- www.nseindia.com
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