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L&T gains on procuring new orders worth Rs 2161 crore

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Capital Market
Last Updated : Jun 06 2016 | 1:01 PM IST

L&T rose 0.48% to Rs 1,468 at 11:31 IST on BSE after the company announced that its construction division has won orders worth Rs 2161 crore across various business segments.

The announcement was made during market hours today, 6 June 2016.

Meanwhile, the BSE Sensex was down 10.34 points, or 0.04%, to 26,832.69

On BSE, so far 33,000 shares were traded in the counter, compared with an average volume of 2.17 lakh shares in the past one quarter. The stock hit a high of Rs 1,472.50 and a low of Rs 1,462.85 so far during the day. The stock hit a 52-week high of Rs 1,886.25 on 17 July 2015. The stock hit a 52-week low of Rs 1,016.60 on 12 February 2016. The stock had outperformed the market over the past one month till 3 June 2016, rising 16.8% compared with Sensex's 6.39% rise. The scrip had also outperformed the market in past one quarter, gaining 21.13% as against Sensex's 9.09% rise.

The large-cap company has an equity capital of Rs 186.37 crore. Face value per share is Rs 2.

L&T's transportation infrastructure business has won a design a build order worth Rs 847 crore from Dedicated Freight Corridor Corporation of India (DFCCIL). This order has been secured by the consortium of L&T and Instalaciones Inabensa, S.A., Spain.

In water and effluent treatment business, L&T has won EPC (engineering, procurement, and construction) orders worth Rs 709 crore. In power transmission and distribution business, L&T has won EPC orders worth Rs 403 crore. In metallurgical and material handling business, L&T has won additional orders worth Rs 202 crore from various ongoing jobs.

Meanwhile, L&T after market hours on Friday, 3 June 2016, announced that it has agreed to sell its entire stake in L&T General Insurance Company (LTGI) to HDFC ERGO General Insurance Company (HDFC ERGO) for an aggregate consideration of Rs 551 crore. L&T General Insurance Company is a wholly-owned subsidiary of L&T. The board of HDFC ERGO also approved the plan to merge the two companies subject to all regulatory approvals. The acquisition would help HDFC ERGO improve its market position. HDFC ERGO is a 51:49 joint venture between housing major HDFC and ERGO International, Germany (part of Munich Re Group). Once the transaction is completed, the L&T Group would exit the general insurance and health insurance businesses. LTGI's gross earned premium income during the year 2015-2016 totaled Rs 483 crore. It had net worth of Rs 142 crore as on 31 March 2016. The share sale is part of L&T's strategy of exiting from its non-core activity.

L&T's consolidated net profit rose 18.6% to Rs 2453.64 crore on 17.6% rise in total income to Rs 33423.78 crore in Q4 March 2016 over Q4 March 2015.

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L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. It operates in more than 30 countries worldwide.

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First Published: Jun 06 2016 | 11:43 AM IST

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