Market Update for 18 January 2020 – L&T Finance recedes on weak Q3

DHFL soars on Piramal takeover

  • Shares of the troubled NBFC were locked in its 5% upper circuit after its creditors approved the ₹37,250 crore resolution plan submitted by Piramal Capital and Housing Finance.
  • Besides the Piramal Group, the Adani Group and US-based Oaktree Capital Management were also bidders for the company. In Q3, shares of DHFL have risen by 130% in anticipation of a potential deal.

L&T wins big-ticket rail project

  • The construction arm of L&T has bagged a large project from the Rail Vikas Nigam in Uttarakhand.
  • The project, which is for constructing a broad-gauge line between Rishikesh and Karanprayag, is estimated to be valued between ₹2,500 and 5,000 crore. The company aims to complete the project in 60 months.
  • Amid a weak market, L&T’s shares were down 1.9% today.

Trident reports bumper Q3 profits

  • The textile maker reported a consolidated net profit of ₹112 crore for the third quarter, a 200% surge from ₹37 crore in the same period last year. The company reported a consolidated revenue of ₹1,303 crore, a 20% YoY increase.
  • Recently, the company secured a patent in Europe for a method of manufacturing fabric, which is used in making soft towels. The shares of the company have gained about 39% in January and were up 1.3% today.

L&T Finance recedes on weak Q3

  • Shares of L&T Finance Holdings fell 6% today as it reported a 51% decline in consolidated net profit for Q3 owing to higher expenses. Its net profit plunged to ₹287 crore from ₹591 crore in Q3 last year.
  • Meanwhile, the company achieved a 51% QoQ growth in disbursements, the highest quarterly disbursement since Q1FY20, driven by rural and infra sector lending.