Shares of this large-cap company jumped around 1 percent in Thursday’s trading session after receiving a significant for hydrocarbon business from ONGC. The shares have delivered around 70 percent returns to its shareholders in one year.
With a market capitalization of Rs. 5,04,792 crores, the shares of Larsen & Toubro Ltd started Thursday’s trading session on a higher note at Rs. 3,660 compared to its previous close of Rs. 3,642.20. During the trading session, the shares hit a high of Rs. 3,678.45, gaining around 1 percent and are currently trading at Rs. 3,669 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the company’s Hydrocarbon vertical (L&T Energy Hydrocarbon) had secured an order from the Oil & Natural Gas Corporation (ONGC) for the MHN TCPP PGC BGC Project (MTPBP), of India’s West Coast.
While L&T did not disclose the exact value of the order win, it counts an order as ‘Significant’ when it is valued order range is between Rs. 1,000 crores to Rs. 2,500 crores.
Furthermore, the scope of work includes engineering, procurement, construction, installation, and commissioning of new Process Gas Compressor (PGC) modules at ONGC’s Mumbai High and Tapti offshore locations along with the upgrade of existing facilities to enhance production.
Earlier, last month, the company won its first EPC railway systems order in ASEAN (All South East Asian Nations) for the Jakarta MRT. For this, the company will be constructing the Jakarta Mass Rapid Transit (MRT) Project Phase 2A through its long-term Japanese partner Sojitz Corporation.
Coming onto the company’s financial statement, the revenue increased by 8 percent from Rs. 51,024 crores during the September quarter to Rs. 55,128 crores in the December quarter. On a contrasting note, the net profits decreased by 7 percent from Rs. 3,846 crores to Rs. 3,593 crores during the same timeframe.
As of December 2023, the company has an order book of Rs. 4,698 billion. In which, 68 percent of the orders were received from the Infrastructure sector and the remaining 32 percent of the orders were received from Energy, Hi-Tech Manufacturing and others.
Headquartered in Mumbai, Larsen & Toubro was incorporated in 1946. The company is a multinational conglomerate that is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology and Financial Services in domestic and international markets.
Written By Vaibhav Patil
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