Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

L&T contests Qatar tax fines, remains optimistic on appeal

Published Nov 18, 2023 10:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LART
+0.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

MUMBAI - Indian engineering giant Larsen & Toubro (L&T) is currently challenging tax fines imposed by Qatari authorities, which total Rs 238.9 crore, due to discrepancies in declared income for the fiscal years 2016-17 and 2017-18. The company has expressed confidence in obtaining relief through the appellate process.

The dispute was disclosed in a regulatory filing today, where L&T detailed its objections to the fines related to income misstatements for FY2017 and FY2018. This follows a recent penalty by the Reserve Bank of India (RBI) in October 2023, when L&T Finance, a subsidiary of the conglomerate, was fined Rs 2.50 crore for non-compliance with certain regulatory requirements.

Despite these setbacks, L&T has reported a strong financial performance for the July-September quarter of 2023. The company noted significant annual growth with profits soaring to Rs 3,223 crore and revenue climbing to Rs 51,024 crore. This robust financial health comes amid challenges but without any material financial adversity impacting the company's operations.

L&T's order book has seen considerable growth due to its substantial presence in the Middle East. In the first half of FY2023, orders from this region contributed impressively to the company's expansive order tally.

As of yesterday, L&T conveyed through a stock exchange filing that it does not foresee any severe financial consequences stemming from Qatar's tax fines. The firm's Gulf operations have been instrumental in bolstering its order intake, which significantly contributed to an extensive order book valued at Rs 4,50,700 crore by the end of Q2.

The construction behemoth's resilience in the face of regulatory challenges underscores its strategic positioning and operational strength in both domestic and international markets. The market will be closely monitoring the outcome of L&T's appeal against Qatar's tax fines as it progresses.

InvestingPro Insights

In light of the recent events surrounding Larsen & Toubro (L&T), InvestingPro data and tips offer some additional insights.

InvestingPro's real-time metrics reveal that L&T has maintained a perfect Piotroski Score of 9, indicating strong financial health. This supports L&T's confidence in overcoming the recent tax fines imposed by Qatari authorities.

Additionally, InvestingPro Tips highlights that L&T has been consistently increasing its earnings per share and that management has been aggressively buying back shares, demonstrating their confidence in the company's value. This is particularly relevant given the company's strong financial performance in the July-September quarter of 2023, with soaring profits and climbing revenue.

Another noteworthy InvestingPro Tip is that L&T has maintained dividend payments for 23 consecutive years. This record of consistent returns to shareholders further underlines the company's financial resilience despite the recent regulatory challenges.

InvestingPro offers a wealth of additional tips and insights, with 15 more tips available for L&T alone. To gain access to these valuable insights, consider subscribing to InvestingPro, which is currently offering a special Black Friday sale with discounts of up to 55%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

L&T contests Qatar tax fines, remains optimistic on appeal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email