L&T gains after completing sale of casting manufacturing unit at Coimbatore

L&T rose 1.11% to Rs 1,207 at 9:29 IST on BSE after completing the transaction for the sale of its casting manufacturing unit located at Coimbatore to Australia's Bradken for total consideration of Rs 163 crore.

L&T made the announcement after trading hours on Friday, 4 March 2016.

Meanwhile, the BSE Sensex was up 30.61 points, or 0.12%, to 24,677.09

On BSE, so far 15,621 shares were traded in the counter, compared with an average volume of 2.76 lakh shares in the past one quarter. The stock hit a high of Rs 1,208.95 and a low of Rs 1,193.75 so far during the day. The stock hit a 52-week high of Rs 1,886.25 on 17 July 2015. The stock hit a 52-week low of Rs 1,016.60 on 12 February 2016.

The large-cap company has an equity capital of Rs 186.30 crore. Face value per share is Rs 2.

L&T said that the business transfer agreement was signed in November 2014. The casting manufacturing unit clocked revenue of Rs 122 crore in the year ended 31 March 2015 (FY 2015), which was less than 1% of the total revenue of the company for the year. The business transfer agreement was signed on 11 November 2015 and was completed on 4 March 2016, L&T said. The sale of the Coimbatore foundry is in line with its strategic plan to exit non-core businesses and rationalize its portfolio, the company said. The company continues to operate two other foundries in Odisha and Gujarat, it added. Bradken is a global manufacturer and supplier of capital and consumable products to the mining, transport, general industrial and contract manufacturing markets.

L&T's consolidated net profit rose 19.4% to Rs 1034.80 crore on 9.1% growth in total income to Rs 26280.94 crore in Q3 December 2015 over Q3 December 2014.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide.

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