L&T eyes Rs 10,000 crore orders in the coming month

Date: 31-08-2009

After a bad spell of five months, things are turning around for India's largest engineering firm, Larsen & Toubro. After announcing new orders worth Rs 10,000 crore in the last one month, the company now expects to get orders worth Rs 10,000 crore more in the next one month. As a result, new order inflows have risen 23% in the year to date, as against a 20% drop in the first quarter.

The company, which reported an order book of around Rs 70,000 crore in March, had missed the 30% growth target it had set for fresh order inflows during 2008-09. Instead, it had to be content with fresh orders of Rs 52,000 crore, a 24% jump over the previous year.

The company is likely to dispose off the 12% stake it holds in Mahindra Satyam in this financial year. Stake sale will be timed so that the tax on the profits can be minimised. Its average purchase price is Rs 82. The current price is around Rs 114, therefore, the company is already sitting on a profit of Rs 200-250 crore.crack crack