BUY LARSEN & TOUBRO SHARES

Larsen and Toubro "CORPORATE" has posted a decline of 27% with profit consolidated for the Quarter Forth of 1014-15 at Rs. 2070 Crores. Profit has been dropped from Rs. 2840 Crores which includes a Rs. 664 Crores amortization charges related to toll road projects. The Revenue was considered to be Rs. 28,023 Crores in last quarter compared to Rs. 27,024 Crores in 2013-14.  The profit decelerated to Rs. 4765 Crores ending March 31, 2015 compared with Rs. 4902 Crores in 2013-14. 

Why this "CORPORATE" ended up in decelerating profit in Share Market?
The reason is simple as they face challenges in implementing International Projects related to hydrocarbons sector is on the decline. Revenue for this fiscal year has increased to Rs. 92005 Crores as compared to Rs. 85,128 Crores in 2013-14. Order book for the group stood at Rs. 232,649 Crores which was 28% higher than the previous year. The Infrastructure Projects gained 19% Revenue at Rs. 43,426 Crore, but execution of projects was done badly. Though they take the project from the Central Government and State Government, implementation part will be done by low class contractors which spoiled the image of L & T. Profitability gain is there but standard of work has been dropped to below par in Engineering.




Project implementation segment has earned Rs. 5148 Crores, Financials recorded Rs. 6393 Crores which shown an increase of growth to 24% compared to last year. Metallurgical, Material Handling, Hydrocarbons, Heavy Engineering and Power sector were deeply hit due to lack of finance in Indian Market.

Now, coming to Central Government after coming to power in New Delhi, must implement the projects very fast and more finance must be infused into the market to these types of companies moving. Second, Global recovery is in a minimum mood, Oil prices are at rock bottom, Uncertainties in Middle East is hampering growth in Global scale and Rupee depreciated against major Currenciesof the world also had its effect on the company.




So I Prefer a buy mode for a period of 6 months and you will gain from it surely. All the investments are related to market and keep it for long term; you will be gaining more profit from this company. BUY "CORPORATE" Larsen and Toubro, TO GAIN MORE PROFIT.