L&T announces Rs 10,000 crore share buyback; co says Q1 profit up 46%, declares Rs 6 special dividend
L&T announces Rs 10,000 crore share buyback; co says Q1 profit up 46%, declares Rs 6 special dividend
L&T said it would buyback of 3,33,33,333 of its fully paid-up equity shares of face value of Rs 2 each from the members of the company at a maximum price of up to Rs 3,000 per share
Amit Mudgill
- Jul 25, 2023,
- Updated Jul 25, 2023 7:15 PM IST
Larsen & Toubro Ltd (L&T) on Tuesday announced a Rs Rs 10,000 crore in share buyback and said its board has declared a special dividend of Rs 6 per share for FY23. These proposals, L&T said, underline the confidence of the company in achieving its growth plans and endorses the financial strength. The move would cheer L&T investors, as the engineering and construction major had in the past talked about its strategic target of increasing return on equity (RoE) to 18 per cent-plus by FY26. It stood at 12.2 per cent in FY23.
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L&T share buyback
L&T said it would buyback of 3,33,33,333 of its fully paid-up equity shares of face value of Rs 2 each from the members of the company at a maximum price of up to Rs 3,000 per share, subject to any increase to the buyback offer price as may be approved by the board or the committee thereof, for an aggregate consideration of up to Rs 10,000 crore, through the tender offer route through stock exchange mechanism.
"The board of directors has approved a proposal to buy-back through the tender offer route equity shares of the Company for an aggregate amount not exceeding Rs 10,000 crore (excluding tax on buy-back). The proposal is subject to the approval of shareholders," L&T said.
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L&T Q1 results The $23 billion multinational firm said its profit for the June quarter rose 46 per cent YoY to Rs 2,493 crore from Rs 1,702 crore in the same quarter last year. Consolidated revenue for the quarter jumped 34 per cent YoY to 47,882 crore from Rs 35,853 crore, primarily aided by execution of a healthy opening order book in its Projects and Manufacturing portfolio. International revenues for the quarter stood at Rs 19,022 crore and constituted 40 per cent of the total revenue.
Ebitda margin for the quarter came in at 10.2 per cent, down 80 basis points over 11 per cent in the year-ago quarter.
L&T order book
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L&T said it received orders worth Rs 65,520 crore at the group level during the quarter ended June 30, up 57 per cent YoY. During the quarter, orders were received across diverse segments like Rail, Renewables, Rural Water Supply, Transmission & Distribution, IT & Office Space and Onshore & Offshore verticals of the Hydrocarbon business. International orders stood at Rs 27,646 crore during the quarter comprised 42 per cent of the total order inflow. The consolidated order book of the group stood at Rs 412,648 crore as on June 30, with international orders having a share of 29 per cent.
L&T commentary
L&T said it will continue its planned trajectory of profitable and return accretive growth. Focus will remain on cash generation and judicious capital allocation. The company has a robust order prospects pipeline in the medium term and is confident of sustaining its growth momentum by utilising the emerging opportunities, with an overarching aim of improving shareholder value on a sustainable basis, L&T said on Tuesday.
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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Larsen & Toubro Ltd (L&T) on Tuesday announced a Rs Rs 10,000 crore in share buyback and said its board has declared a special dividend of Rs 6 per share for FY23. These proposals, L&T said, underline the confidence of the company in achieving its growth plans and endorses the financial strength. The move would cheer L&T investors, as the engineering and construction major had in the past talked about its strategic target of increasing return on equity (RoE) to 18 per cent-plus by FY26. It stood at 12.2 per cent in FY23.
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L&T share buyback
L&T said it would buyback of 3,33,33,333 of its fully paid-up equity shares of face value of Rs 2 each from the members of the company at a maximum price of up to Rs 3,000 per share, subject to any increase to the buyback offer price as may be approved by the board or the committee thereof, for an aggregate consideration of up to Rs 10,000 crore, through the tender offer route through stock exchange mechanism.
"The board of directors has approved a proposal to buy-back through the tender offer route equity shares of the Company for an aggregate amount not exceeding Rs 10,000 crore (excluding tax on buy-back). The proposal is subject to the approval of shareholders," L&T said.
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L&T Q1 results The $23 billion multinational firm said its profit for the June quarter rose 46 per cent YoY to Rs 2,493 crore from Rs 1,702 crore in the same quarter last year. Consolidated revenue for the quarter jumped 34 per cent YoY to 47,882 crore from Rs 35,853 crore, primarily aided by execution of a healthy opening order book in its Projects and Manufacturing portfolio. International revenues for the quarter stood at Rs 19,022 crore and constituted 40 per cent of the total revenue.
Ebitda margin for the quarter came in at 10.2 per cent, down 80 basis points over 11 per cent in the year-ago quarter.
L&T order book
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L&T said it received orders worth Rs 65,520 crore at the group level during the quarter ended June 30, up 57 per cent YoY. During the quarter, orders were received across diverse segments like Rail, Renewables, Rural Water Supply, Transmission & Distribution, IT & Office Space and Onshore & Offshore verticals of the Hydrocarbon business. International orders stood at Rs 27,646 crore during the quarter comprised 42 per cent of the total order inflow. The consolidated order book of the group stood at Rs 412,648 crore as on June 30, with international orders having a share of 29 per cent.
L&T commentary
L&T said it will continue its planned trajectory of profitable and return accretive growth. Focus will remain on cash generation and judicious capital allocation. The company has a robust order prospects pipeline in the medium term and is confident of sustaining its growth momentum by utilising the emerging opportunities, with an overarching aim of improving shareholder value on a sustainable basis, L&T said on Tuesday.
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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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