Commodity Online
MUMBAI: Infrastructure equipments major, Larsen & Toubro Ltd (BOM: 500510) pared gains after rising by close to 1% in the morning trades following company winning six orders worth Rs.1230 crore for various electrical projects in the country.
The stock hit a high of Rs.1589 during the day, however, the stock had surged close to 140% over the past quarter.
24-Hour Online Forex Trading. Start with FREE practice accountL&T has gained by close to 10% in past five sessions from a recent low of Rs.1630 on 23 June 2009. A likely focus of the government on infrastructure sector in the Union Budget 2009-2010 to boost economic growth seems to have triggered a pre-budget rally in the stock.
The new orders include four orders valued at Rs.1,031 crore for transmission lines and railway constructions, and two orders worth Rs.199 crore for the construction of sub-stations.
Notwithstanding a slowdown in the Indian capital goods and infrastructure sectors, L&T’s order intake rose 23% to Rs.51621 crore in the year ended March 2009 (FY 2009).
Company’s order book stood at Rs.70319 crore as on 31 March 2009, which is twice its revenue of Rs.34045 crore in FY 2009, which gives a strong revenue visibility.
L&T had sold its entire 11.5% stake in Aditya Birla Group-owned UltraTech for Rs.1037 crore to a handful of financial investors in the early part of June.
The cash infusion of Rs.1037 crore from the stake sale will reportedly find its way into Larsen & Toubro's plans to expand in the nuclear, defence and thermal power arenas and is part of the fund raising plan for the current fiscal.
The company’s net profit rose 3.3% to Rs.998.52 crore in Q4 March 2009 over Q4 March 2008. Net sales rose 23.60% to Rs 10835.79 crore in Q4 March 2009 over Q4 March 2008.
