Larsen & Toubro (L&T) share price rose in early trade today after the engineering and construction firm said it has completed the strategic divestment of its electrical and automation business to Schneider Electric. The large cap share climbed 2.18% to Rs 965.95 against previous close of Rs 945.30 on BSE.
The share stands higher than 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages.
In one month, the stock has gained 4.77%. Market cap of the firm rose to Rs 1.34 lakh crore. L&T stock price has fallen 2.42% in one week and 28% in one year.
The share has lost 26.33% since the beginning of this year. Total 0.53 lakh shares changed hands amounting to turnover of Rs 5.08 crore on BSE.
L&T had signed a definitive pact with Schneider Electric in 2018 to sell its electrical and automation business for an all-cash consideration of Rs 14,000 crore, as part of its long-term strategy to exit non-core activities. The size of the deal was not disclosed.
"Larsen and Toubro (L&T), India's leading engineering, technology, construction and financial services conglomerate, today announced the closure of the strategic divestment of its electrical and automation (E&A) business to Schneider Electric, a global player in energy management and automation," the company said.
In Q1, the firm logged a steep 68 per cent decline in net profit to Rs 536.88 crore against Rs 1,697.62 crore in the corresponding quarter last year.
The firm saw a decline in orders on the back of low interest toward fresh investments and delay in award decision.
Revenue from operations fell 28.26 per cent to Rs 21,259.97 crore in Q1 against Rs 29,635.95 crore in the same quarter last fiscal.
Meanwhile, Sensex was trading 331 points higher at 38,959 and Nifty gained 95 points to 11,476. On Monday, benchmark indices snapped six days of gaining streak after reports of tension on India-China border weakened market sentiment. Sensex closed 839 points or 2.13% lower at 38,628 and Nifty fell 260 points or 2.23% to 11,387.