L&T gains after signing MoU with Areva

Larsen & Toubro rose 1% to Rs 1,779.05 at 9:36 IST on BSE after the company said it signed a pact with French firm Areva for cooperation to maximise localisation for the 9,900 megawatt Jaitapur nuclear plant in Maharashtra.

The announcement was made on Saturday, 11 April 2015.

Meanwhile, the BSE Sensex was up 23.78 points, or 0.08%, to 28,903.16.

On BSE, so far 17,000 shares were traded in the counter, compared with an average volume of 2.40 lakh shares in the past one quarter.

The stock hit a high of Rs 1,784.30 and a low of Rs 1,776.05 so far during the day. The stock hit a record high of Rs 1,892.95 on 4 March 2015. The stock hit a 52-week low of Rs 1,242.45 on 17 April 2014.

The stock had underperformed the market over the past one month till 10 April 2015, rising 0.49% compared with 0.59% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 17.40% as against Sensex's 5.18% rise.

The large-cap company has an equity capital of Rs 186.01 crore. Face value per share is Rs 2.

L&T and France-based Areva have signed a Memorandum of Understanding (MoU) for cooperation to maximize localization for the EPR (European Pressurized Reactor) Nuclear Power Plant to be built at Jaitapur in Maharashtra. Areva's EPR nuclear reactor is a 3rd Generation advanced pressurized water reactor.

The MoU with Areva represents a major step forward for L&T in the field of Pressurized Water Reactor technology. This is a significant addition to L&T's existing capabilities and the lead role it has played in equipment manufacture, construction and project management for Pressurized Heavy Water Reactors in India's domestic nuclear power program.

The MoU covers the prospect of partnership between L&T and Areva in manufacturing key nuclear island equipment, valves, piping, electrical, instrumentation and engineering work. Through this partnership, Areva will transfer technology to utilize the forging capabilities of L&T Special Steels & Heavy Forgings (a joint venture with Nuclear Power Corporation of India). The partnership will support the Indian Government's 'Make in India' initiative and enhance the competitiveness of the Jaitapur project.

L&T's consolidated net profit rose 8.8% to Rs 866.54 crore on 9.5% rise in total income to Rs 24082.58 crore in Q3 December 2014 over Q3 December 2013.

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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