On Monday, shares of one of India’s leading infrastructure companies rose 0.5 percent marginally to Rs 3,112 after the company received a mega order in the Hydrocarbon Business from the Middle East. 

Larsen & Toubro Ltd is a Large-cap stock with a market capitalization of Rs 4,33,735 crore, On Monday, At 1:33 p.m., the shares were trading at Rs 3,082.20, down 0.82 percent from the previous close price. 

According to the company’s exchange filing, the Hydrocarbon business (L&T Energy Hydrocarbon – LTEH) of Larsen & Toubro (L&T) has received a Letter of Intent for a mega Offshore order from a prestigious client in the Middle East. 

The scope of the company’s work comprises engineering, procurement, construction, and installation of a new large offshore platform and brownfield work of integration with existing facilities. 

In addition, the General Tax Authority of 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 penalties have been levied for the tax periods spanning from April 2016 to March 2017 and April 2017 to March 2018. L&T is of the view that the penalty levied is arbitrary and unjustified. Hence it has filed an appeal. 

According to Larsen & Toubro, project classification if the order is between Rs 1,000 crore and Rs 2500 crore considered Significant orders, followed by large orders are between Rs 2,500 crore and Rs 5,000 crore, major orders between Rs 5,000 crore and Rs 7,000 crore, and mega orders between Rs 10,000 and Rs 15,000 crore. 

The shares of Larsen and Toubro Ltd gained 39 percent in the last six months and 53 percent in a year. 

The Company’s return on equity increased from 10.52 percent in FY22 to 11.72 percent in FY23, while the return on capital employed rose from 10.91 percent to 11.99 percent during the same period.

The company’s revenue has increased by 19 percent year on year, from Rs 42,762 crore in Q1FY23 to Rs 51,024 crore in Q1FY24. During the same period, Net profit has significantly increased by 37 percent from Rs 2,819 crore to Rs 3,855 crore. 

Larsen & Toubro Ltd is a multinational conglomerate that is engaged in engineering, procurement, and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology, and Financial Services in both domestic and international markets. 

Written by Omkar Chitnis


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