L&T gains after signing pact with South Korean firm

L&T rose 0.82% to Rs 1,694.90 at 11:56 IST on BSE after the company said it signed a contract with South Korea's Hanwha Techwin for executing tracked self propelled gun program for the Indian army.

The announcement was made during trading hours today, 21 April 2017.

Meanwhile, the S&P BSE Sensex was up 67.58 points, or 0.23% to 29,489.97.

On the BSE, 35,000 shares were traded in the counter so far, compared with average daily volumes of 1.50 lakh shares in the past one quarter. The stock had hit a high of Rs 1,698 and a low of Rs 1,679.95 so far during the day. The stock hit a 52-week high of Rs 1,719.45 on 7 April 2017. The stock hit a 52-week low of Rs 1,224 on 24 May 2016.

The stock had outperformed the market over the past one month till 20 April 2017, rising 9.88% compared with 0.87% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 18.84% as against Sensex's 8.83% rise.

The large-cap company has equity capital of Rs 186.65 crore. Face value per share is Rs 2.

L&T and Hanwha Techwin (HTW) of South Korea, signed a contract for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) Gun program for the Indian Army.

L&T was declared as the sole qualified bidder, post User Evaluation Trials, based on the performance of the K9 VAJRA-T, a world class self-propelled howitzer appropriately customised and fielded by L&T with HTW as the technology partner. The K9 VAJRA-T gun is an enhanced version of HTW's K9 Thunder, to suit specific requirements of the Indian Army including desert operations. HTW's K9 Thunder is one of the best performing self-propelled howitzers in the world with over 1,000 numbers already in service in Korea and few other countries. This program has set new benchmarks in co-development and co-production of Defence Systems by Indian Private Sector Defence Players and Foreign Majors.

The contract is a result of nearly a decade long close relationship and joint efforts of the two companies on this program, through extensive user evaluation and field trials followed by contract negotiations with the Indian Ministry of Defence, L&T said in a statement.

L&T shall not only manufacture K9 VAJRA-T in India, with over 50% indigenous content, but also provide through life support from India, the company said.

L&T's consolidated net profit rose 38.9% to Rs 972.47 crore on 1.7% growth in net sales to Rs 26018.15 crore in Q3 December 2016 over Q3 December 2015.

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. L&T is India's largest private sector defence and aerospace company with experience of over three decades in the segment. Hanwha Group, Hanwha Techwin's parent company, is the largest private sector defence conglomerate in South Korea.

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