L&T's Share Price Rise Over Two Percent in Early Trading Hours
Larsen & Toubro (L&T) saw its share price increase by over two percent during early trading this week following the announcement of board approval for borrowing plans totaling Rs.12,000 crore.
L&T's shares rose by as much as 2.88 percent to reach Rs.3,515.90 each on the BSE.
The company stated that its Board of Directors has sanctioned long-term borrowings of up to Rs.12,000 crore.
Additionally, L&T's board approved the appointment of Subramanian Sarma, currently the Whole-time Director & President of Energy, to the position of Deputy Managing Director & President of the Company, effective from April 2, 2025, to February 3, 2028.
Sarma has been with Larsen & Toubro as Whole-time Director and President and has over 40 years of professional experience, including 30 years spent dealing with business activities in the Middle East. He was accountable for managing the entire Oil and Gas value chain across various countries while at L&T.
Prior to his time with L&T, Sarma held the position of Managing Director with one of the leading EPC contractors in the Oil and Gas Sector in the Middle East for four years, as stated in the official announcement.
Moreover, the board confirmed the re-appointment of S. V. Desai as Whole-time Director, effective from July 11, 2025, to July 4, 2030. The re-appointment of T. Madhava Das as Whole-time Director for a term of five years was also approved, starting from July 11, 2025.
The share price of L&T has increased by seven percent over the past month, although it has fallen by five percent year-to-date (YTD). Over the last six months, L&T shares have decreased by more than eight percent. Nonetheless, the large-cap company has yielded returns of 61 percent over the last two years and a remarkable 390 percent in the past five years.
Larsen & Toubro is a $27 billion Indian multinational firm involved in EPC Projects, Hi-Tech Manufacturing, and Services, and operates in various regions around the globe.
Despite not meeting market expectations, the company reported a consistent growth rate of 14 percent in net profits for the October-December 2024 period. For that quarter, L&T announced a consolidated net profit of Rs.3,358.8 crore, up from Rs.2,947.36 crore the previous year.
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The profit increase was supported by a 17 percent rise in net sales, amounting to Rs.64,667 crore during the same quarter.