L&T hits record high on FM's impetus on infra sector

Larsen & Toubro rose 4.16% to Rs 1,840.45 at 14:33 IST on BSE following Finance Minister Arun Jaitley providing a thrust on the infrastructure sector in Union Budget 2015-16.

Meanwhile, the BSE Sensex was up 44.30 points, or 0.15%, to 29,405.80.

On BSE, so far 8.07 lakh shares were traded in the counter, compared with an average volume of 2.12 lakh shares in the past one quarter.

The stock hit a high of Rs 1,844 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,780.25 so far during the day. The stock hit a 52-week low of Rs 1,087 on 3 March 2014.

The stock had outperformed the market over the past one month till 28 February 2015, rising 4.08% compared with 0.67% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 7.73% as against Sensex's 2.33% rise.

The large-cap engineering and construction major has an equity capital of Rs 185.91 crore. Face value per share is Rs 2.

Finance Minister Arun Jaitley provided a thrust on the infrastructure sector, sharply increased the government's capital expenditure for 2015-16 and announced a road map for cut in corporate tax rate by five per cent over four years when he presented Union Budget 2015-16 in parliament on Saturday, 28 February 2015. Shares of L&T rose 0.47% to Rs 1,766.90 on that day.

Jaitley proposed an increase in investment in infrastructure by Rs 70000 crore in the year 2015-16 over the year 2014-15 from the Centre's funds and resources of Central Public Sector Enterprises (CPSEs). Arun Jaitley stated that the present state of infrastructure does not match the growth ambitions. Hence he has increased outlay on both the roads and the gross budgetary support to the Railways by Rs 14031 crore and Rs 10050 crore. The CAPEX (capital expenditures) of the public sector units is expected to be Rs 317889 crore, an increase of approximately Rs 80844 crore over RE (revised estimate) 2014-15.

On consolidated basis, L&T's net profit rose 8.8% to Rs 866.54 crore on 9.7% growth in net sales to Rs 23847.86 crore in Q3 December 2014 over Q3 December 2013.

Larsen & Toubro 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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