Larsen & Toubro (L&T) today moved up in an adverse market, ahead of its results slated to be announced tomorrow. The stock of the cement, construction and engineering conglomerate closed higher 0.47 per cent to Rs 182.80 on the Bombay Stock Exchange. The scrip hit a high of Rs 186.45 and a low of Rs 182.90 earlier. Volumes stood at a high of 6.99 lakh shares.
The recent recovery on the counter also comes after the A V Birla group company Grasim Industries, which last year bought a strategic 10 per cent stake, recently consolidated its holding by acquiring an additional 2.84 per cent in L&T through market purchases.
Analysts say Grasim's acquisition augurs well for both the companies given the strength of the combined cement capacity of the two, estimated at about 27 million tonne.
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However, no earthshaking performance numbers are expected from L&T's Q4 ended 31 March 2002 results given that cement prices were weak in the fourth quarter. L&T is scheduled to unveil its Q4 and FY 2001-02 results tomorrow. Analysts project the company's sales between Rs 2,355.7 crore and Rs 2,636.3 crore for MQ 2002 against sales of Rs 2,479.68 crore in MQ 2001 - a between 5 per cent fall to a 6.3 per cent rise, dealers said.
For May 2002, L&T recorded a marginal rise in cement despatches to 1.09 million tonne from 1.07 million tonne in the same month the previous year. Cement production was at 1.14 million tonne for May, up from 1.07 million tonne in May 2001.
The construction and engineering major has its fortunes heavily linked to the economy. In fact, the company has been dogged by the economic slowdown in recent years.