L&T Shares Gain Post Q3 Results, Bullet Train Contract

Shares of Larsen & Toubro (L&T) gained 2% to Rs 1,393 on Wednesday after the infrastructure major reported its financial results for the December-ended quarter.

Further, the company said that it has bagged a contract worth Rs 1,390 crore from the National High-Speed Rail Corporation Limited (NHSRCL) for the procurement and fabrication of 28 steel bridges for crossing over railway lines, rivers, highways, road, and other structures for the Mumbai Ahmedabad high-speed rail corridor, a part of India's first bullet train project.

However, the stock pared gains as Sensex slipped nearly 500 points or 1% in the morning session, causing a decline of over 1.5% to as low as Rs 1,333.05 per share.

On Monday, after market hours, L&T reported a 4.9% year-on-year growth in the consolidated net profit at Rs 2,467 crore, with receiving highest ever orders in a quarter on receipt of prestigious and large contracts.

The profit growth was largely attributed to higher profit from IT a TS segment and sale of commercial property in realty. PAT (profit after tax) also included a gain on divestment of Rs 209 crore from discontinued operations towards further adjustments accrued against the sale of the electrical & automation business to Schneider Electric SE and sale of the UK based Marine control & automation systems subsidiary to Rolls-Royce Power Systems AG, L&T said.

International orders during the quarter constituted 14% of the total order inflow.

The consolidated order book of the Group stood at a record Rs 3,31,061 crore as on 31 December 2020.