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L&T shares jump 6.5% to all-time high on hefty profit

LiveMint logoLiveMint 02-06-2014 Ravindra Sonavane

Mumbai: Larsen and Toubro Ltd (L&T) shares rose as much as 6.5% to touch their all-time high of `1,649 apiece in morning trade on Monday after the company reported a 71.2% increase in net profit for the quarter ended March, on Friday.

The boost in profit was helped by strong order inflows even as India’s largest engineering and construction conglomerate said it expects the new government’s thrust on infrastructure to kick-start stalled projects and support its growth.

Net profit rose to a higher-than-expected `2,723.48 crore in the March quarter from `1,591.19 crore, excluding an extraordinary item of `18.72 crore, in the year-ago period. Net sales rose 11.08% to `20,079.10 crore.

L&T’s order book—a gauge of demand—grew 13% year-on-year to `1.63 trillion as of 31 March, while order intake for the year ending March 2015 was 20% up compared with that for the year ended March 2014.

“The guidance on order intake (20%) and revenue (15%) is robust and overall it is a great set of numbers and we remain positive on the stock,” said Sanjeev Zarbade, vice president-Private Client Group Research, Kotak Securities, after the results were declared.

At 9.38am, L&T shares were trading at `1,611.7 on BSE, up 4.05% from their previous close, while India’s benchmark Sensex rose 0.55% to 24,351.64 points. The BSE capital goods index rose 3.04%.

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