Saturday, May 17, 2008

L&T builds on new tie-up

Larsen & Toubro gained 1.95% to Rs 3020.20 at 12:28 IST on BSE after the company said it had entered into a partnership agreement with GE Energy, a unit of General Electric, for power plant control systems in India.

The stock hit a high of Rs 3030 and a low of Rs 2975.45 so far during the day. The stock had a 52-week high of Rs 4670 on 1 November 2007 and the stock hit a 52-week low of Rs 1665 on 25 May 2007.

The company’s current equity is Rs 58.46 crore. Face value per share is Rs 2.

The current price of Rs 3020.20 discounts its Q3 December 2007 annualised EPS of Rs 66.03, by a PE multiple of 45.74.

GE Energy will provide its power plant main control system products to Larsen & Toubro (L&T), whereas L&T will leverage its strengths in engineering and project execution to deliver comprehensive power plant automation solutions to customers.

Atlanta based GE Energy is engaged in supplying power generation and energy delivering technologies with the revenue of $22 billion in 2007. GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy.

On 15 May 2008, L&T entered into an agreement with Lafarge India for sale of its ready mix concrete business for an enterprise value of Rs 1480 crore.

On 16 April 2008, L&T signed an agreement with Tamil Nadu Government to set up an integrated shipyard complex with a total investment of about Rs 3000 crore in north Chennai.

On 15 April 2008, L&T secured an order worth Rs 2000 crore from Bombay Dyeing for developing textile mills & spring mills complexes at Worli and Wadala regions of Mumbai.

On 9 April 2008, L&T bagged four different orders worth Rs 1,687 crore from four different clients.

On 31 March 2008, L&T’s engineering and construction division received an order worth Rs 576 crore from Hindustan Petroleum Corporation.

On 18 March 2008, L&T’s heavy engineering division bagged an order worth 28 million Euros from Hebi Coal & Electricity Co, China for supplying coal gasifier & syngas cooler assembly.

On 5 March 2008, the company bagged three orders for transmission line projects totaling Rs 458 crore.

L&T’s net profit rose 40.1% to Rs 481.79 crore on 55.1% growth in net sales to Rs 6382.68 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.

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