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L&T rallies as Q4 beats estimate

The stock rallied 12% to Rs 1,448 on the NSE in early morning trade.

Larsen & Toubro (l&t)

SI Reporter  |  Mumbai 

L&T rallies as Q4 beats estimate

has rallied 12% to Rs 1,448 on the National Stock Exchange (NSE) in the early morning trade on Thursday, after the company reported a better-than-expected net profit and revenues for the fourth quarter ended March 31, 2016 (Q4FY16) a day earlier.

The company reported 19% year-on-year (YoY) rise in consolidated net profit to Rs 2,454 crore on the back of 18% YoY rise in total income from operations at Rs 33,157 crore. Operating margin rose from 12.8% in Q4FY15 to 14.7% in Q4FY16.

Analysts, on an average, had expected profit of Rs 1,870 crore on revenues of Rs 29,850 crore.

Antique Stock Broking maintains a ‘buy’ rating on the stock with the price target of Rs 1,640, given the improved growth outlook, absence of any more further provisioning under the hydrocarbon segment, revival of loss making metallurgy segment.

"The company is L1 in around Rs 10,000 crore of power generation orders and is expecting the finalisation of large defence order in FY17e. Given the healthy order pipeline both in domestic and overseas the management is guiding for 15% growth in FY17e order intake," added the report.

At 09:33 AM, the stock was up 10% at Rs 1,417 on the NSE. The trading volumes on the counter nearly doubled with a combined 3.9 million shares changed hands on the NSE and BSE.

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First Published: Thu, May 26 2016. 09:38 IST