L&T Q1 Profit Jumps 46%, Board Approves Rs 506 Crore Investment in L&T Energy Green Tech

26 Jul 2023 , 11:31 AM

Larsen & Toubro Ltd reported a net consolidated profit of Rs 2,493 crore for the April-June quarter, marking a 46% increase from the previous year’s corresponding quarter profit of Rs 1,702 crore.

The L&T board approved an ‘additional investment of up to Rs 506 crore’ in L&T Energy Green Tech Limited, an existing subsidiary.

The investment will be made at ‘arm’s length’ and may involve subscribing to equity or preference shares, inter-corporate deposits, company-guaranteed debt, or a combination of these options.

As per the information, the face value of the shares for the investment will remain unchanged, and there will be no change in the shareholding post the investment, as per the regulatory filing.

The L&T board also gave the green light for a Rs 10,000 crore share buyback program, offering shareholders a buyback price of up to Rs 3,000 per share.

Additionally, the board proposed a special dividend of Rs 6 per share for 2023-24, subject to approval from shareholders.

The special dividend of Rs 6 per equity share (300% on the face value of Rs 2 each) will be paid on or before August 14, 2023, with the record date set for Wednesday, August 2, 2023.

L&T Energy Green Tech Limited (LTEGL), formerly known as L&T Power Limited, is an existing subsidiary of Larsen & Toubro Limited, with a total income of Rs 21.19 lakhs as of March 31, 2023.

The investments and strategic decisions signify L&T’s commitment to growth and its focus on expanding its presence in the energy and green technology sectors. These approvals position the company to execute its growth plans and strengthen its market position.

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