Larsen & Toubro Signs a Contract with DRDO

The Indian headline indices ended the highly volatile session significantly lower, dragged down by losses in the power, utilities, and information technology sectors. All sectoral indices were trading down, with BSE Bankex and BSE Capital Goods being the least affected. 

Larsen & Toubro Ltd (L&T), the top Sensex gainer, attracted investors with gains of about 1% in an otherwise weak market and also reached a 52-week high of Rs 2,424 per share on the BSE. The company’s contract with DRDO could be one of the primary drivers behind today’s gains. 

The company and DRDO signed a contract for the realisation of two Air Independent Propulsion (AIP) system modules for Kalvari class of submarines of the Indian Navy. The contract documents were exchanged between Arun T Ramchandani, Executive Vice President and Head-L&T Defence and Shri PT Rojatkar, Director – Naval Materials Research Laboratory (NMRL) in the presence of J D Patil, Member of Executive Committee of Management and Advisor (Defence & Smart Technologies) to CEO & MD Larsen & Toubro Ltd & senior officials from NMRL and L&T. 

Taking into account the company’s quarterly financial performance, it reported a growth of 10.38% from Rs 52,850.67 crore registered in Q4FY22, recording total revenue of Rs 58,335.15 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter the previous year, it increased by 10.11% from Rs 3,620.69 crore to Rs 3,986.78 crore. 

Larsen and Toubro Ltd is a multinational conglomerate that is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as infrastructure, hydrocarbon, power, defence, information technology and financial services in the domestic and international markets. Shares have enjoyed a rally and soared nearly 10% in just one month, providing stellar returns of more than 60% over the last year.