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L&T tumbles on poor Q4 outcome

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Capital Market
Last Updated : May 22 2013 | 4:30 PM IST

The result was announced during market hours today, 22 May 2013.

Meanwhile, the S&P BSE Sensex was down 47.81 points or 0.24% at 20,063.80.

On BSE, 11.88 lakh shares were traded in the counter as against average daily volume of 2.14 lakh shares in the past one quarter.

The stock hit a high of Rs 1,652.10 and a low of Rs 1,503 so far during the day. The stock had hit a 52-week high of Rs 1,719.50 on 29 October 2012. The stock had hit a 52-week low of Rs 1,106.40 on 4 June 2012.

The stock had outperformed the market over the past one month till 21 May 2013, rising 9.09% compared with the Sensex's 5.76% rise. The scrip also outperformed the market in past one quarter, advancing 12.73% as against Sensex's 4.07% rise.

The large-cap company has equity capital of Rs 123.16 crore. Face value per share is Rs 2.

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L&T reported 10.19% rise in net profit to Rs 4910.65 crore on 15.07% increase in total income to Rs 62724.16 crore in the year ended March 2013 over the year ended March 2012.

L&T said its orderbook stood at Rs 153604 crore as at 31 March 2013. International order book constituted 13% of the total order book, L&T said.

L&T garnered fresh orders worth Rs 88035 crore during the year ended 31 March 2013, recording a healthy growth of 25% over the previous year. The order inflow during Q4 March 2013 was Rs 27929 crore, a 32% increase over the previous corresponding period.

International order inflow constituted 17% of the total order inflow for the year ended 31 March 2013. The major orders during the year came from building & factories, power transmission & distribution, transportation infrastructure and power sectors.

In terms of outlook, L&T said that the challenges in the growth path of Indian economy are still persisting in the form of infrastructure bottlenecks, resource availability, high fiscal and current account deficits. Moreover, constraints to the speedy implementation of the reform process is adversely impacting the investment climate in India, L&T said.

L&T further said that high domestic savings and improved channelization of risk capital are expected to provide impetus to growth in the medium term. Improvement in the fortunes of the power sector, privatization and indigenisation of defence manufacturing and resolution of issues relating to mining, gas pricing, land acquisition etc will boost the company's prospects.

The infrastructure development is an irreversible process for reviving growth momentum in India and the company, with its proven execution capabilities, is well positioned to harness the potential opportunities. The international business environment provides opportunities but is highly competitive. The countries in the Middle East, select markets in CIS Region, Africa and South Asia, however, hold good prospects.

L&T said it is investing in business development efforts in the select international markets. The company is optimistic in sustaining its growth momentum on the back of healthy order book and strong balance sheet.

L&T said that to commemorate the occasion of the platinum jubilee of the company, its board of directors in its meeting held today, 22 May 2013, recommended issue of bonus shares in the ratio of 1:2 (i.e. one bonus equity share each for every two held).

The company's board recommended a dividend of Rs 18.50 per share for the year ended 31 March 2013.

L&T is a $14 billion technology, engineering, construction, manufacturing and financial services conglomerate with global operations.

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First Published: May 22 2013 | 3:31 PM IST

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