L&T shares gain after GA-ASI partnership to produce defence systems for Indian Armed forces

Shares of Larsen and Toubro (L&T) Ltd. gained up to 1% on Friday, October 31, after the company said it has partnered with the US-headquartered General Atomics Aeronautical Systems Inc. (GA-ASI) to manufacture Medium Altitude Long Endurance (MALE) remotely piloted aircraft systems (RPAS) in India for the Indian Armed forces.

Under the partnership, L&T said it would participate in the upcoming 87 MALE RPAS programme of the ministry of defence, where it would be the prime bidder and GA-ASI would be the technology partner. The collaboration will enable the production of GA-ASI's MQ-series RPAS that are combat proven, it said. These are operational across the globe with millions of flight hours in surveillance and strike missions, it added.

SN Subrahmanyan, chairman and managing director of L&T, said the partnership offers India a unique opportunity to manufacture state-of-the-art unmanned platforms indigenously.

"By combining GA-ASI's proven technology with L&T's robust manufacturing expertise, we aim to deliver cutting-edge MALE RPAS solutions that will enhance the operational readiness of the Indian Armed forces and contribute to a strong, sustainable defence ecosystem in India," Vivek Lall, chief executive of General Atomics Global Corporation, said.

L&T reported its second quarter earnings on Wednesday, October 29. Its net profit increased 15.6% to ₹3,926 crore, while its revenue was up 10.4% at ₹67,983 crore. The company's EBITDA increased 7% to ₹6806.5 crore and its EBITDA margins remained steady at 10%.

L&T shares were trading 0.8% up at ₹4,020.1 apiece around 10.10 am on Friday. The stock has gained 9.9% in the past month and has gained 20.3% in the last six months.

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