L&T wins major order; likely to regain customer confidence

The construction engineering company, L&T has received an order to supply 90 units of Komatsu mining equipment to various companies in sectors such as coal, cement & iron ore.

The breakup of the order is as follows: 66 units of Komatsu 100 tonnes and 60 tonnes dump trucks, 15 units of Komatsu wheel loaders, 7 units of Komatsu hydraulic excavators, and allied equipment.

By receiving such orders from valuable customers across various sectors, L&T may again pull up the mining industry, which is driven by progressive & supportive policies of the Government of India. Moreover, winning such major orders may also boost its customers’ confidence in L&T's long-term commitment to after-sales service for the mining industry.

Meanwhile, its Q2FY21 revenue dropped by 12 per cent as compared to Q2FY20 and the operating profit margin dropped by 17 per cent as compared to Q2FY20. Besides, PAT margin shot up by more than 100 per cent as compared to Q2FY20 whereas, half-yearly revenue went down by 20 per cent in FY21 as compared to FY20. The operating profit margin went down by 30 per cent but the PAT margin went up by 46 per cent in FY21 as compared to FY20.

L&T is a pioneer in the Indian construction & mining machinery industry. It is engaged in the distribution and support of equipment such as hydraulic excavators, rear dump trucks, crawler dozers, wheel loaders, etc.

At the time of market closing on Monday, the stock of L&T was trading at Rs 1,169.60, up by 1.77 per cent. Besides, it gave an intraday high of Rs 1,171.90 on BSE.