Larsen & Toubro rose 0.31% to Rs 1,741.70 at 14:55 IST on BSE after the company said it bagged a Rs 4500 crore contract from the defence ministry for artillery guns.
The announcement was made during trading hours today, 12 May 2017.Meanwhile, the S&P BSE Sensex was down 89.10 points, or 0.29% to 30,161.88.
On the BSE, 1.16 lakh shares were traded in the counter so far, compared with average daily volumes of 1.55 lakh shares in the past one quarter. The stock had hit a high of Rs 1,757.25 and a low of Rs 1,727.55 so far during the day. The stock hit a 52-week high of Rs 1,771 on 27 April 2017. The stock hit a 52-week low of Rs 1,224 on 24 May 2016.
The stock had outperformed the market over the past one month till 11 May 2017, rising 2.18% compared with 2.05% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.67% as against Sensex's 6.76% rise.
The large-cap company has equity capital of Rs 186.65 crore. Face value per share is Rs 2.
Larsen & Toubro (L&T) has entered into a contract with the Ministry of Defence (MoD) for supply of 100 units of 155mm/ 52 calibre tracked self-propelled gun systems to the Indian Army. The contract is valued at about Rs 4500 crore.
L&T, supported by its South Korean technology partner Hanwha Tech Win (HTW), had bid for this 'Buy Global' acquisition program of MoD in 2011. Among four bidders to the program RFP, L&T emerged as the sole qualified bidder, after a series of user trials and evaluations, based on the performance of the K9 VAJRA-T self-propelled Howitzer.
The K9 VAJRA-T gun is an enhanced version of HTW's K9 Thunder - a world class self- propelled Howitzer, customised and co-developed by LCT HTW to suit the specific requirements of the Indian Army including desert operations. HTW's K9 Thunder self-propelled Howitzer is among the best in the world with over 1,000 units already in service in Korea and few other countries.
This contract embodies the Government's 'Make in India' initiative. It envisages delivery of the 100 guns in 42 months with associated engineering support package and maintenance transfer of technology to support these Howitzer regiments throughout their life cycle. These guns will have over 50% indigenous content and will be delivered from LET's manufacturing facilities, including a new Armoured Systems Complex at Hazira.
This program sets new benchmarks in co-development and co-production of defence systems by any Indian defence company in collaboration with an international technology partner.
L&T's consolidated net profit rose 38.9% to Rs 972.47 crore on 1.7% growth in net sales to Rs 26018.15 crore in Q3 December 2016 over Q3 December 2015.
L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. L&T is India's largest private sector defence and aerospace company with experience of over three decades in the segment. Hanwha Group, Hanwha Techwin's parent company, is the largest private sector defence conglomerate in South Korea.
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