L&T jumps 3% on better-than-expected Q3 margins

L&T jumps 3% on better-than-expected Q3 margins

Stock in engineering giant Larsen & Toubro (L&T) gained nearly 3 per cent in early morning trade on Thursday, after the company reported higher-than-expected margins for the October-December quarter.

The largest engineering group of India reported an impressive year-on-year jump of 190 basis points in its ebitda margins, while adjusted margins climbed 160 basis points, thanks to higher revenues from the infrastructure segment.

The group's gross revenue jumped 12 per cent year-on-year to Rs 14,534 crore in the three-month period under review. Net profit also jumped 12 per cent, from to Rs 1,136 crore. However, it was down from 16 banks and brokerages' average estimate of Rs 1,150 crore.

L&T also reported a 21 per cent jump in new orders to Rs 21,722 crore, mainly because of new orders from overseas customers that accounted for 38 per cent of the group's new business.

But, L&T slashed its order book growth outlook for the current financial year, from its earlier forecast of 20 per cent to 15 per cent.

L&T CFO R Shankar Raman said in a statement, "The general weakness of the macro-economic environment continues. Considering that the country is already in election mode, policy issues are still to be addressed in their entirety."

As of 09.22 a. m. today, L&T stock traded 2.8 per cent higher at Rs 1,033 a share after earlier hitting a high of Rs 1,039.35 apiece.

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