The country’s largest engineering and construction company, has won back the Street’s confidence, with its robust execution and diversification into other regions. For the past few quarters, even though it has shown it can drive growth in a difficult environment without compromising on profitability, the Street has remained sceptical.
L&T reported 69% growth in net profit for the quarter ended March on the back of improved operational performance, higher sales and an exceptional income of Rs 484 crore from dilution of its stake in L&T Finance. Net profit on a standalone basis stood at Rs 2,723 crore in the fourth quarter against Rs 1,609 crore in the same period last year. Even after adjusting for one-time gains, the company has beaten analyst estimates by a long shot.
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In the fourth quarter, sales grew by 11% year-on-year to Rs 20,079 crore and for the full year sales rose 10% to Rs 56,598 crore.
Executive chairman A M Naik said, "L&T's performance is better than expectation. We have grown our international business and we have been able to get over the storm.'' He added that long-delayed infrastructure projects should gain momentum with the change of government. He expects visibility in project tendering by August-September.
The stock opened at Rs 1,612 and surged to a high of Rs 1,649. A combined, over one lakh shares changed hands on the BSE and NSE till 0.930 hrs.