L&T hits 21-month high buoyed by Q4 results, 1:2 bonus plan

Engineering and construction major Larsen & Toubro (L&T) hit 21-month high of Rs1,834, rising 2.6 per cent on the Bombay Stock Exchange (BSE) in early morning trade, after the company reported a 29.5% growth in consolidated net profit for the Q4FY17, at Rs3,025 crore.

This is the highest level the stock has reached since 10 August 2015. The L&T stock closed at Rs1,766, down Rs21.15 or 1.18 per cent lower from its previous close on profit taking.

L&T, which reported a net profit of Rs2,335 crore for the corresponding quarter of the previous year, saw profitability rising after it shed some none-core businesses.

Consolidated revenue for the quarter increased by 12 per cent to Rs36,828 crore over the previous year quarter while consolidated order book of the company stood at Rs2,61,000 crore as of 31 March, an increase of 5 per cent from a year earlier.

The board of L&T approved issue of bonus shares to the holders of equity shares of the company in the ratio of 1:2 (ie, one bonus equity share of Rs2 each for every two fully paid equity shares of Rs2 each held). The board also recommended a dividend of Rs21 per share (previous year Rs18.25 per share), pre bonus, for the financial year 2016-17.

Thus far in the calendar year 2017, the stock had outperformed the market by surging 33% as compared to 17% rise in the S&P BSE Sensex till Monday. At 09:44 am; it was trading flat at Rs 1,789, after hitting low of Rs 1,769 on BSE in intra-day trade. A combined 2.18 million shares changed hands on the counter on BSE and NSE so far.