Shares of Larsen and Toubro Limited traded a marginal 0.5 percent lower to Rs 3,091 early on November 20 after the income tax authorities in Qatar imposed two penalties on the company, amounting to Rs 111.3 crore and Rs 127.6 crore, citing discrepancies in the income declared by it and the authority's assessment.
The penalties have been levied for the tax periods spanning from April 2016 to March 2017 and April 2017 to March 2018. L&T has contested these penalties, filing an appeal against them, asserting that the company views them as arbitrary and unjustified.
As per data, the Middle East holds the position of the second most crucial geographical region for L&T. During the first half of the fiscal year 2023-24, it constituted 41 percent of the company's order inflow. Additionally, orders from the Middle East comprised 32 percent of L&T's total order book, which amounted to Rs 4,50,700 crore as of the end of September.
"Reasonably confident of a favourable outcome at the appellate level," L&T said in an exchange filing on November 17. It further added that no material impact is expected of this penalty.
In the second quarter, the company's net profit climbed 45 percent year-on-year to Rs 3,223 crore, while the revenue increased Rs 51,024 crore, compared to Rs 42,763 crore clocked in the corresponding quarter of the previous fiscal.
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