Larsen & Toubro advanced 6.52% to Rs 1,504.90 after the company said L&T Construction has commenced executing one of India's largest communication network for T-Fibre.
Meanwhile, the S&P BSE Sensex was up 776 points or 2.04% to 38,790.83. Shares rose across the board after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
Larsen & Toubro (L&T) said the smart world and communication (SW&C) and power transmission & distribution (PT&D) businesses of L&T Construction jointly commenced executing one of the largest communication network in India for Telangana Fibre Grid Corporation. The announcement was made during market hours today, 23 September 2019.
The order falls under "significant" category which ranges between Rs 1,000 crore and Rs 2,500 crore as per its classification of contracts.
The initial design & survey works are being completed and the roll out will establish IP-MPLS infrastructure and optical fibre network for affordable high speed broadband connectivity and digital services across 4 zones, 11 districts, 215 mandals, 3201 gram panchayats and approximately 8.65 lakhs households in Telangana.
This state-led project, partially funded by Central Government's Bharatnet program is envisaged to accelerate the development of the state in the field of Information and Communication Technology (ICT) that will strengthen the G2G and G2C services and can be leveraged to effectively deliver reliable triple play services of voice, video and data to the citizens.
Shares of L&T gained 15.7% in two trading sessions to its current market price of Rs 1,504.90, from a recent closing low of Rs 1,300.60 on 19 September 2019.
On the BSE, 3.74 lakh shares were traded in the counter so far compared with average daily volumes of 2.13 lakh shares in the past two weeks. The stock hit a high of Rs 1,547.65 and a low of Rs 1,433 so far during the day.
The stock hit a 52-week high of Rs 1,606.7 on 28 May 2019. The stock hit a 52-week low of Rs 1,183.4 on 23 October 2018.
L&T's consolidated net profit rose 26.5% to Rs 1537.10 crore on a 9.7% increase in net sales to Rs 29,635.95 crore in Q1 June 2019 compared with Q1 June 2018.
L&T is a technology, engineering, construction, manufacturing and financial services company.
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