L&T gains after overseas order win

L&T rose 1.68% to Rs 1,496.05 at 12:36 IST on BSE after the company signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India.

The announcement was made during market hours today, 22 September 2016.

Meanwhile, the S&P BSE Sensex was up 241.12 points, or 0.85%, to 28,748.54

On BSE, so far 55,000 shares were traded in the counter, compared with average daily volume of 1.74 lakh shares in the past one quarter. The stock hit a high of Rs 1,497 and a low of Rs 1,478.35 so far during the day. The stock hit a 52-week high of Rs 1,615 on 27 July 2016. The stock hit a 52-week low of Rs 1,016.60 on 12 February 2016. The stock had underperformed the market over the past 30 days till 21 September 2016, falling 0.29% compared with 1.85% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 1.74% as against Sensex's 5.57% rise.

The large-cap company has an equity capital of Rs 186.47 crore. Face value per share is Rs 2.

L&T said that the company has signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard.

L&T said that the high-speed patrol vessels are purpose-built for controlling and protecting sea security and sovereignty, detecting illegal activities such as smuggling, and undertaking search and rescue missions. Constructed of Aluminium alloy, the vessels are about 35 metres long and can clock a speed of 35 knots with state-of-the-art navigation and surveillance equipment and self-defence capabilities on board. Complete design and engineering of these vessels will be undertaken at the company's dedicated Warship Design Centre with the vessels being built at its Kattupalli Shipyard, off Chennai, L&T said.

Commenting on the occasion, S.N. Subrahmanyan, President and Deputy Managing Director of L&T hoped for the contract to pave the way for stronger bilateral ties between India and Vietnam.

L&T's consolidated net profit rose 45.5% to Rs 609.60 crore on 9.07% growth in total income to Rs 22176.22 crore in Q1 June 2016 over Q1 June 2015.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. It operates in more than 30 countries worldwide.

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