Larsen and Toubro (L&T), a prominent infrastructure company, is gearing up for an important board meeting scheduled to take place next week. During the meeting, the company’s board members will discuss and deliberate two significant proposals that hold considerable implications for the firm’s future endeavors. One of the key proposals on the table is related to a share buyback plan, aimed at repurchasing a portion of the company’s outstanding shares from its existing shareholders. The other crucial proposal is centered around the payment of a special dividend for the fiscal year 2023-24.
Larsen and Toubro has emerged as a leading player in the construction domain, and on Friday, the company made a momentous announcement. It revealed that its construction unit, L&T Construction, had successfully secured a ‘mega’ contract from the prestigious National High-Speed Rail Corporation Limited (NHSRCL). This significant contract is in connection with the much-anticipated Mumbai Ahmedabad High-Speed Rail Project, also known as the MAHSR Bullet Train project. The particular contract won by L&T involves taking charge of construction activities for the 135.45 km stretch, identified as the MAHSR – C3 package.
The scope of work under the MAHSR – C3 package encompasses a diverse range of tasks, including the construction of viaducts, stations, major river bridges, depots, tunnels, earth structures, and other essential auxiliary works. The ambitious Mumbai-Ahmedabad High-Speed Rail project stretches over a vast area of approximately 508 km, spanning multiple states and territories, and will incorporate 12 stations along its route.
Though the exact financial value of this coveted contract was not disclosed, based on the company’s classification, a ‘mega’ order typically entails an amount exceeding ₹7,000 crore, which equates to approximately one billion US dollars. Following the momentous announcement of this substantial contract win, L&T’s shares witnessed a surge of approximately 4 per cent. The stock hit a remarkable 52-week high of ₹2,594.40 on the Bombay Stock Exchange (BSE), further attesting to the positive response from investors. By the end of trading, the stock registered an impressive 3.88 per cent rise, closing at ₹2,586.25. This exceptional performance propelled L&T to emerge as the top gainer among the shares listed on the benchmark index, Sensex.
In the same board meeting, scheduled for July 25, L&T will also present and seek approval for its financial results for the first quarter of the fiscal year 2023-24. As the company positions itself to navigate through various opportunities and challenges in the market, these proposals and announcements hold significant significance for its stakeholders and potential investors. The upcoming board meeting is likely to set the tone for the company’s growth trajectory and future prospects.