Shares of this large-cap company jumped 5 percent in Friday’s trading session after receiving a mega order from the Ministry of Defence. The shares have delivered more than 70 percent to its shareholders in one year.
With a market capitalisation of Rs. 5,01,582 crores, the shares of Larsen & Toubro Ltd started Friday’s trading session on a higher note at Rs. 3,501.65 compared to its previous close of Rs. 3,477.55. During the trading session, the shares hit a high of Rs. 3,655.30, gaining 5 percent and are currently trading at Rs. 3,641 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had secured a mega order from the Ministry of Defence for the supply of High Power Radars (HPR) to the Indian Air Force (IAF). While L&T did not disclose the exact value of the order win, it counts an order as ‘mega’ when it is valued above Rs 7,000 crores.
HPR is a static sensor for long-range aerial surveillance with higher uptime. Equipped with multiple NextGen features and capable of remote operations, they will augment IAF’s capabilities for monitoring special zones of interest, designating and tracking adversaries with optimal accuracy. The project is turnkey and is to be executed across multiple locations.
Furthermore, L&T also signed a contract, for an earlier won major order, for the supply of indigenously developed Close-In Weapon Systems (CIWS) to the IAF. CIWS is planned for deployment at various locations across India to protect vital assets from all types of low-flying, low-signature aerial threats including Unmanned Aerial Vehicles.
CIWS comprises Air Defence Guns, Tracking Radars and a Search Radar linked to a Command and Control Shelter along with associated simulators and communication equipment. Moreover, CIWS and HPR shall be realised at the company’s state-of-the-art manufacturing facilities, in close collaboration with industrial ecosystem partners comprising MSMEs across India.
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, the company received order 68 percent of 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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