How did L&T become biggest Sensex gainer today? Here is the reason behind S.N. Subrahmanyan-led firm’s two-day stock rally
File: Outside the Larsen & Toubro Precision Manufacturing and Systems complex on the outskirts of Coimbatore | REUTERS
Sensex constituent Larsen & Toubro (L&T) continued its rally in the Indian equity markets on Wednesday after it followed Tuesday morning’s “ultra-mega” order announcement with better-than-expected quarterly results after the market closed.
June 30 trading opened with L&T stock soaring 4.53 per cent to as high as ₹3,653.70 per share on the BSE. On the NSE, L&T jumped 4.49 per cent to a ₹3,652.70 high in morning trade.
The Indian multinational firm posted a 29.8 per cent rise in consolidated net profit of ₹3,617.19 crore for the June quarter, it announced on Tuesday evening. Earlier in the day, it said its hydrocarbon offshore business vertical secured an “ultra-mega” order from a “prestigious client” in the Middle East. For L&T, an “ultra-mega” order is any project valued above ₹15,000 crore. This led to its stock settling 2.13 per cent higher at ₹3,495.10 apiece for the day.
Two days of straight rally have made L&T the biggest gainer in the Sensex on Wednesday morning trade.
L&T saw its consolidated revenue from operations for the three-month period jump 16 per cent year-on-year to ₹63,678.92 crore. It also received orders worth ₹94,453 crore at the Group level during the quarter.
“This quarter, we have performed well across all financial parameters. At a Group level, we registered once again the highest order inflow for Q1 ever. Besides improved performance on all P&L parameters, the return ratios have also moved higher,” said L&T Chairman and Managing Director S.N. Subrahmanyan.
L&T’s ‘ultra-mega’ GCC order
The Indian multinational firm, on Tuesday, when announcing “ultra-mega” order from a “prestigious client”, neither specified any exact value for the deal nor disclosed who the client was.
The scope of the project secured by its unit, L&T Energy Hydrocarbon Offshore, includes “engineering, procurement, construction and installation of offshore structures, along with the upgradation of existing facilities.”
“This ultra-mega order is a testament to the speed and precision with which the hydrocarbon offshore business vertical delivers complex projects across the globe,” L&T had then said in a regulatory statement.
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