Shares of engineering conglomerate Larsen and Toubro (L&T) extended their gaining streak for the fifth straight session on Wednesday, rising as much as 5.5% during the same period. The Sensex heavyweight extended gains today after the company informed exchanges that its board of directors approved a proposal to raise up to ₹7,500 crore through external commercial borrowings, term loans, non-convertible debentures, or any other instrument.
“We wish to inform you that the board of directors of the company at its meeting held today approved long term borrowings of up to ₹7,500 crore, including through external commercial borrowings, term loans, non-convertible debentures, or any other instrument as may be appropriate,” L&T said in a BSE filing on March 26.
Cheering the news, shares of L&T rose as much as 0.7% to ₹3,696.75 after opening higher at ₹3,685 levels on the BSE. The market capitalisation increased to ₹5.06 lakh crore with 0.1 lakh shares changing hands over the counter in the first hour of trade.
L&T shares touched its 52-week high of ₹3,738.90 on January 30, 2024, and its 52-week low of ₹2,122.20 on March 28, 2023. The bluechip stock has risen 71% in the past one year; 24% in six month; and over 4% year-to-date (YTD). The counter added more than 5% in a month.
In the meeting, L&T’s board also approved the appointment of MSKA & Associates as statutory auditors of the company for a term of 5 years, from the conclusion of the 79th annual general meeting (AGM) till the conclusion of the 84th AGM of the company, subject to the approval of the shareholders.
“The company’s current statutory auditors Deloitte Haskins and Sells LLP would be completing their tenure as statutory auditors of the company on conclusion of the 80th AGM of the company to be held in the calendar year 2025,” the release notes.
In order to provide the new auditors adequate time to get familiar with the company’s operations & processes and to ensure a smooth transition, both Deloitte Haskins and MSKA & Associates would jointly conduct the audit from the conclusion of the 79th Annual General Meeting of the Company till the conclusion of the 80th Annual General Meeting.
In the third quarter ended December 2023, the consolidated profit after tax (PAT) of L&T stood at ₹2,947 crore, up 15% compared to the corresponding quarter of the previous year. The consolidated revenues stood at ₹55,128 crore in Q3 FY24, recording a YoY growth of 19%, aided by ramp up in the execution of the strong order book in the projects and manufacturing portfolio.
L&T received orders worth ₹75,990 crore at the group level during the quarter ended December 31, 2023, a growth of 25% on an annual basis. On a cumulative basis, the order inflow for the nine months ended December 31, 2023 stood at ₹2.3 lakh crore, registering a growth of 49% over the corresponding period of the previous year. International orders were at ₹1.37 lakh crore, constituting 60% of the total orders. As of December 31, 2023, the consolidated order book stood at ₹4.69 lakh crore, with international orders having a share of 39%.
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