The board of Larsen & Toubro (L&T) on Tuesday announced a share buyback programme worth Rs 10,000 crore and a special dividend of Rs 6 per share.
The company posted a 46 per cent rise in consolidated net profit for the first quarter ended June 30 beating Street expectations.
L&T said in a regulatory filing that it will repurchase over 3.33 crore shares from its shareholders at a maximum price of up to Rs 3,000 per share payable in cash for an aggregate consideration of up to Rs 10,000 crore, through the tender offer route via stock exchanges.
The maximum buyback price of Rs 3,000 represents a premium of 17 per cent to the closing price of the L&T scrip on the BSE on Tuesday. While the announcement was made after market hours, the share settled at Rs 2,561.95, a loss of 1.67 per cent over Monday’s close.
L&T’s board of directors also approved a special dividend of Rs 6 per share, or 300 per cent, on the face value of Rs 2 per share for which the record date has been set as August 2. This will be paid on or before August 14.
Meanwhile, the engineering and infrastructure firm reported a 46 per cent rise in consolidated net profit at Rs 2,493 crore against Rs 1,702.07 crore in the same period of the previous year.
Revenues rose to Rs 47,882.37 crore from Rs 35,853.20 crore in the year-ago period. Analysts were expecting the conglomerate to report a net profit of Rs 2,000 crore.
L&T said that the rise in its revenues was largely aided by the execution of a healthy opening order book in its projects and manufacturing portfolio. During the period, its international revenues at Rs 19,022 crore constituted a 40 per cent of the total revenues.
The period saw it receiving orders worth Rs 65,520 crore, thus registering a strong growth of 57 per cent.
During the quarter, orders came from diverse segments such as rail, renewables, rural water supply, transmission & distribution, IT & office space apart from onshore and offshore verticals of the hydrocarbon business.
International orders at Rs 27,646 crore comprised 42 per cent of the total order inflow.
Its consolidated order book crossed Rs 4 trillion at Rs 412,648 crore as on June 30, with the share of international orders standing at 29 per cent.
