LT shoots up 5% on strong growth guidance for FY13Posted on Wednesday, May 16, 2012 - 09:14 am
Engineering and construction major Larsen & Toubro extended rally further, rising 5.2% to hit an intraday high of Rs 1,220 on the BSE after company’s strong forecast for next financial year 2012-13. Yesterday L&T reported better than expected growth of 13.9% year-on-year in its net profit at Rs 1,920 crore, but its revenues came in lower than expectations at Rs 18,461 crore for Q4FY12, a growth of 21% YoY.
Major booster for the stock was the guidance for FY13. Going ahead, L&T remains bullish. The company is confident of a gradual upswing in the Indian economy in FY13 and says with increasing government focus on sectors such as infrastructure, power, oil & gas and fertilizers will have a positive impact on order inflow and revenues.
AM Naik, chairman, L&T, says “15-20% growth in revenue and 15-20% in order intake were deferred last year, quite a few in defence and other areas and they are at the age of being given away, and quite a few are already L1, that is lowest in price, therefore we have more confidence now.”
At 10:04 hours IST, the stock was quoting at Rs 1,213, up Rs 53.20, or 4.59%. Market capitalisation of the company stands at Rs 74,283.99 crore.
In the previous trading session, the share closed up 1.84% or Rs 20.95 at Rs 1,159.80.