L&T secures power business orders worth Rs 1,000-2,500 Cr

L&T secures power business orders worth Rs 1,000-2,500 Cr

Larsen & Toubro ( L&T ) Secures Power Business Orders Valued at Rs 1,000-2,500 Crore

Larsen & Toubro (L&T), a leading multinational engineering conglomerate, has recently announced its acquisition of significant orders in the power transmission and distribution sector, both within India and internationally. The total value of these orders ranges between INR 1,000 crore and INR 2,500 crore. The company’s stock has demonstrated strong performance, with a remarkable 13.67% increase year-to-date and an impressive 54.64% return in the past year, currently trading at INR 2,375 per share on the Bombay Stock Exchange (BSE).

One of the latest orders secured by L&T involves the construction of a 765kV transmission line, specifically designed to facilitate the smooth transportation of renewable energy from the upcoming wind and solar energy hub in Andhra Pradesh, centered around Kurnool. The company’s order book for the fiscal year 2023 stands at an impressive INR 2.3 trillion. Anticipating the upcoming elections in March 2024, L&T has provided a guidance of 10-12% order intake growth for the fiscal year 2024. The management has also indicated a robust pipeline visibility of over INR 10 trillion, comprising both domestic and international projects. The projected pipeline includes approximately INR 6.5 trillion worth of infrastructure, power transmission, transportation, metals & minerals, and other projects, as well as INR 2.5 trillion worth of projects in the energy sector, particularly hydrocarbon.

During a conference call, L&T expressed its confidence in further improving net working capital (NWC)/revenue, with a notable improvement from 19.7% in FY22 to 16.1% in FY23. The company expects continued enhancement of net working capital due to the increasing share of Gulf Cooperation Council countries in the order book, ensuring prompt payments. The management anticipates improved order prospects in the hydrocarbon and refinery sectors from the Middle East by FY24-25.

L&T disclosed in a regulatory filing that it has secured two orders for upgrading electrical networks in large industrial facilities located in the Middle East. These orders entail the establishment of gas insulated substations, along with high voltage cable systems. Additionally, the installation of power transformers and control & protection systems will be pivotal components of these projects.

Also Read: Godrej Properties board approves Rs 750 Cr NCD issuance

Dinanath Dubhashi, the managing director of L&T, emphasized the company’s accomplishments, stating, “This achievement has been driven by a robust year-on-year growth of 35% in the retail book, boasting exceptional asset quality, and a significant 54% reduction in the wholesale book.”

L&T recently reported a fiscal fourth quarter profit of INR 3,986.78 crore, marking an 11% increase compared to the corresponding quarter of the previous year, which stood at INR 3,620.69 crore. The company’s operating revenue for the fourth quarter of FY22 amounted to INR 58,335.15 crore, reflecting a solid growth rate of 10.4% in comparison to INR 52,850.67 crore in the same period last year.

About L&T:

Larsen & Toubro Ltd, also known as L&T, is a multinational conglomerate company based in Mumbai, India. It has diverse business interests including engineering, construction, manufacturing, technology, information technology, and financial services. L&T is recognized as one of the world’s leading construction companies, ranking among the top five globally.

For more of the Latest News, Click Here

Leave a Reply

Your email address will not be published. Required fields are marked *