Strong Growth for Larsen and Toubro as Net Profit Surges 46%, Board Announces Buyback and Special Dividend

Rajesh
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Larsen and Toubro Group's flagship infrastructure company, Larsen & Toubro Ltd. (L&T), has released its financial results for the quarter ended June 2023, showcasing remarkable performance. The company witnessed a robust 46% surge in its Net Profit, reaching an impressive figure of Rs 2,493 crore. Additionally, the consolidated revenue also experienced a notable YoY increase of 34%, amounting to Rs 47,882 crore.

Larsen and Toubro


Shareholder Benefits: Buyback and Special Dividend

The L&T board has taken significant steps to reward its shareholders and boost investor confidence. They have approved a special dividend to be paid out at a rate of Rs. 6 per equity share with a face value of Rs 2 each, specifically for the financial year 2022-23. The record date for eligibility to receive this special dividend has been set on August 2.

Furthermore, in a bid to enhance shareholder value and provide an opportunity for investors to participate in the company's growth, the board has authorized a share buyback program. The tender offer entails the buyback of 3,33,33,333 fully paid-up equity shares of face value Rs. 2/- each ("Equity Shares") at a maximum price of up to Rs. 3,000 per Equity Share ("Buyback Offer Price"). The buyback program's total value is set at up to Rs. 10,000 crore (excluding tax on buyback). The buyback will be executed through the tender offer route via the stock exchange mechanism. The Board may determine the specific price at which the buyback will be conducted at an appropriate time.

Stock Movement and Market Position

Following the announcement of these favorable financial results and shareholder benefits, L&T's stock experienced some fluctuations in the market. The shares of L&T closed at Rs 2561.95 apiece, indicating a 1.67% decrease from its previous closing value. Throughout the trading day, the stock hit an intraday high at Rs 2617.80 and an intraday low of Rs 2553.60 apiece on BSE. It is noteworthy that L&T's stock had reached its 52-week high at Rs 2634.05 apiece and the 52-week low at Rs 1742 apiece,respectively.

A Market Leader in Infrastructure

L&T continues to solidify its position as a leading large-cap infrastructure company and a market leader within the sector. As part of the prestigious L&T Group, the company boasts a significant market capitalization of Rs 3,60,100.71 Crore.

In conclusion, Larsen & Toubro Ltd. has demonstrated impressive financial performance, with a substantial increase in Net Profit and Consolidated Revenue. The board's decision to initiate a buyback and declare a special dividend further reflects the company's commitment to shareholder value and growth. As L&T remains a dominant player in the infrastructure space, it continues to inspire investor confidence and deliver steady returns over the years.

Also Read : Tirupati Tyres Ltd: A Multibagger Stock Poised for Growth with Anticipated Stock Split Announcement

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