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L&T hits new high on strong Q3 results

The stock hit a new high of Rs 1,467, up 3.5% on BSE after the company reported a strong 53% jump in its consolidated net profit at Rs 14.9 billion for the quarter ended December 2017.

SI Reporter  |  Mumbai 

L&T, larsen and Toubro

(L&T) hit a new high of Rs 1,467, up 3.5% on BSE in early morning trade after the company reported a strong 53% jump in its consolidated net profit at Rs 14.9 billion for the quarter ending December 2017 (Q3FY18). The engineering & construction giant had profit of Rs 9.7 billion in the same quarter last fiscal.

Revenue from operations during the quarter under review rose 10% to Rs 287.5 billion against Rs 261.1 billion reported in the corresponding quarter last year.

The company saw a rebound in orders in Q3FY18 leading to a 38% growth in its order inflow seen at Rs 481.3 billion. With this, the company's total outstanding order book now stands at Rs 2.7 trillion. A larger chunk of these orders are from the domestic market, with expecting to end the financial year with 75% of its order book coming from the domestic market alone.

“After a weak order intake in H1FY18, saw strong uptick in orders, taking the total to Rs 481 billion (up 38%), driven by domestic orders (post addressing GST-related issues). For 9MFY18, order intake grew 8% to Rs 1,032 billion as orders from private sector remained elusive. The order backlog grew 5% to Rs 2.7 trillion and, with a strong order backlog, we expect execution to pick up in the next few quarters,” analysts at Antique Stock Broking said in result review.

Further, since is firing on all cylinders, we see it as a credible play on investment recovery. We maintain BUY with revised SoTP based target price of Rs 1,580, it added.


First Published: Thu, February 01 2018. 09:30 IST
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