L&T surges on new order

Larsen & Toubro is in the limelight today after a really long time. The stock is up 1.6% or by Rs.26 at Rs.1662, with an intra day high at Rs.1670.85. Its 52-week high stands at Rs.1892.95.

The company announced today that it has received orders to the tune of Rs.1711 crore, across various business segments in March 2015. In the Press Release issued by the company, it has stated that the business and factories business has secured orders worth Rs 880 crore, while power transmission and distribution business won orders amounting of Rs 676 crore from Bihar State Power Transmission Company and Power Grid Corp. Another Rs.155 crore order is from its water and renewable energy business.

The company has been receiving orders consistently and its order book as usual, is very healthy. But the results have indicated that what really matters is the implementation and order execution.

L&T ended Q3FY15 with a 9% (YoY) rise in net profit at Rs.870 crore on a 10% rise in revenue at Rs.23,850 crore. The profit has missed estimates and the company had also cut its order inflow guidance from 10% to 15-20%.