L&T to consider share buyback, special dividend next week

At its forthcoming board meeting on July 25, Larsen & Toubro (L&T) announced that it will also consider a buyback of equity shares in addition to the special dividend for FY24.

The board of the engineering conglomerate will meet to ratify the financial results for the quarter that ended on June 23. This is the second time that L&T will take a buyback into consideration.

In August 2018, the board of L&T approved the company's first buyback in 80 years, for up to 4.29 percent of its paid-up equity capital, totaling around Rs 9,000 crore. The market regulator rejected the request, citing compliance problems with its post-buyback debt-equity ratio. 

L&T's group chairman, A M Naik, stated in the company's FY23 annual report that the firm is committed to keeping its attention on cash generation, pursuing cautious capital allocation, maintaining a healthy leverage and cash balances, and regularly distributing it to shareholders. According to the report, L&T reduced its standalone entity debt levels to Rs 18,151 crore at the end of the previous fiscal year. With a solid cash balance of roughly Rs 24,300 crore and a gross debt to equity ratio of 0.25 times, the corporation is well-equipped to handle "business uncertainties."

Source: Media Reports