The share price of Larsen & Toubro jumped nearly 2% in early trade, as the company’s power transmission and distribution vertical announced a major order win worth Rs 5,000-10,000 crore for the establishment of power transmission infrastructure in India and the Middle East.
L&T: India order details
The company’s power transmission and distribution (PT&D) vertical has bagged a batch of engineering, procurement and construction (EPC) orders worth Rs 5,000 to Rs 10,000 crore for the establishment of electricity grid systems in India and abroad.
These orders are classified under the major order win category.
For India, the PT&D vertical has received an order for the design, supply and construction of two 220 kV Gas Insulated Substations in the Durgapur–Raniganj–Asansol industrial belt of West Bengal.
The scope of the project also covers transmission line segments with advanced conductors and multi-circuit towers. “These grid modernisation jobs will provide a stable voltage profile and enhance reliability of power networks for infrastructure and industrial projects in the region,” the company said in its regulatory filing.
L&T: Middle East order details
The company’s PT&D vertical in the Middle East has secured orders from utilities for the turnkey construction of five substations and over 250 km of transmission lines. These are located in three different countries across the region.
The projects are up to 500 kV levels, and one of the projects also involves the supply and installation of a 400 kV underground cable system.
Commenting on the order wins, the company in its filing added, “In view of surging demand, shifting nature of the energy mix and security-driven initiatives, grid investments have become high-stake, high-tech priority areas for economic forerunners.”
L&T: Order win spree
This marks the second order win in just two days by the company, as yesterday L&T’s two business verticals had jointly secured a significant order from the Government of India’s Department of Atomic Energy for setting up the LIGO India Observatory. The observatory will come up at Sundhan in Maharashtra’s Hingoli district.
In L&T’s parlance, significant orders mean those between Rs 1,000 crore and Rs 2,500 crore.
L&T: Share Price
Following the order win, the company’s share price rose nearly 2% in the early trade session. Over the past one month, the company’s stock has delivered a return of over 14%, while over the past one year, the company’s stock has climbed by over 34%.