Leading Multinational Conglomerate which is one of the leading players in domestic and overseas Markets, for providing EPC Solutions across various sectors in focus upon receiving a work order of upto Rs. 2,500 Crores from Oil & Natural Gas Corporation (ONGC) Limited
Price action
With a market capitalization of Rs. 4,84,386 Crores, the shares of Larsen & Toubro Limited were trading at Rs. 3,522.05 per equity share, down 0.77 percent from its previous day’s close price of Rs. 3,549.40.
What happened
Larsen & Toubro Limited’s L&T Energy Hydrocarbon (LTEH) vertical has secured a new work order from the Oil & Natural Gas Corporation (ONGC) Limited for consideration in the range of Rs. 1,000 – 2,500 Crores for the eighth phase of the Pipeline Replacement Project.
The said work order involves the engineering, procurement, construction, installation & commissioning of 129 km of subsea pipelines and associated modification works across India’s west coast offshore fields of ONGC
Commenting on the order win, Mr Subramanian Sarma, Whole-time Director & President – Energy, L&T, said, “This order reflects ONGC’s continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects. This order further demonstrates L&T’s unwavering commitment to India’s energy requirement.”
About the company
Larsen & Toubro Limited is a multinational conglomerate operating in over 50 countries, it is primarily engaged in providing engineering, procurement, and construction (EPC) solutions across major sectors such as Hydrocarbon, Power, Infrastructure, Information Technology, Defence, and Financial Services in domestic and international markets.
It has a strong order book worth Rs. 4,758 Billion, of which International orders are 61.97 percent (Rs. 2949 Billion) and Domestic orders are 38.02 percent (Rs. 1,809 Billion).
The segmental order breakup is as follows Infrastructure projects 65 percent, Energy 25 percent, Hi-Tech manufacturing 7 percent, and others 3 percent. As per the geography, 62 percent are domestic projects, 35 percent in the Middle East, USA & Europe 0.3 percent, and 3 percent in the rest of the world.
As for the revenue breakdown, It generates 51 percent of its revenue from the Infrastructure segment, 29 percent from services, 13 percent from energy, 4 percent from Hi-Tech manufacturing, and 3 percent from other segments.
Financials and Ratios
Its Revenue from Operations grew by 7.67 percent from Rs. 36,734 Crores in Q4FY23 to Rs. 39,553 Crores in Q4FY24, accompanied by profits of Rs. 3,002.85 Crores to Rs. 2,666.07 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 14.7 percent and a return on capital employed (ROCE) of 13.4 percent. It has reported a debt-to-equity ratio of 1.35.
Written by: Bharath K.S
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