L&T rallies on securing new order from Indian army

Larsen & Toubro (L&T) advanced 3.50% to Rs 802 after a unit of L&T Construction secured a large order from the Indian Army for unified network management system.

The Smart World & Communication business of L&T Construction has secured a 'large' order from the Indian Army to establish a Unified Network Management System (UNMS) to manage, support and operate the countrywide Armed Forces Network under the Network for Spectrum (NFS).

The project is to be implemented in 18 months followed by 3 years of warranty and 7 years of Annual Maintenance Contract (AMC) during which L&T will provide managed maintenance services including Service Level Agreement (SLA) monitoring, service impact analysis and root cause analysis for the countrywide Armed Force Next Generation Network.

As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 and 5,000 crore. The announcement was made during market hours today, 7 April 2020.

Meanwhile, on Friday (3 April), depository institutions CDSL and NSDL notified changes to the foreign investment limits in individual companies, raising the same to their respective sectoral caps. Higher foreign investment limits in Indian companies would lead to MSCI (Morgan Stanley Capital Investment) to raise Indian companies' weightage on its indices. L&T is one of the stocks which could see an increase in MSCI weightage.

Moreover, L&T on Monday (6 April) said its board will meet on 9 April 2020 to consider raising funds, including through issue of debt securities.

On a consolidated basis, the company's net profit rose 15.21% to Rs 2,352.12 crore on a 5.87% rise in net sales to Rs 36,242.68 crore in Q3 December 2019 over Q3 December 2018.

Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.

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