L&T rebounds as Q2 beats estimates

Larsen and Toubro (L&T) is trading higher by 2.5% at Rs 1,674, bouncing back almost 4% from intra-day’s low on reporting a better-than-expected 42% year-on-year (yoy) growth in net profit at Rs 1,137 crore in the quarter ended September 2012 due to Rs 267 crore extra-ordinary gain.Analyst on an average had estimated profit of Rs 877 crore from engineering giant. Net sales grew 17% at Rs 13,195 crore on year-on-year (yoy) basis.

L&T has gained Rs 214 crore due to disinvestment of stake in a subsidiary company and Rs 53 crore on sale of its remaining holding in Mahindra Satyam (formerly Satyam Computer Services).

 

As at September 30, 2012, the order book stood healthy at Rs 158,528 crore, of international order book constituted 12% of the total order book.

“Order inflow at Rs 20,967 crore recorded an impressive y-o-y growth of 30%, sustaining the momentum seen during the first quarter of the current year,” L&T said in a press release.

With its execution efficiencies and robust order book, the company is placed well to realize its near term targets and medium term plans, it added.

The stock opened at Rs 1,627 and hit a low of Rs 1,616 on the BSE. A combined 2.4 million shares have changed hands on the counter so far on both the exchanges.