L&T shares gain in early trade after significant order wins

Larsen and Toubro (L&T) shares gained 0.4 percent in early trade on June 27 after the company announced that its distribution and power transmission business received significant orders ranging between Rs 1,000 crore and Rs 2,500 crore.

On a year-to-date basis, the stock has given a 14 percent return and a strong 55 percent return in the last one year.

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In a regulatory filing to the stock exchanges, the company declared that its power transmission and distribution division has secured two contracts in the Middle East to enhance electrical networks in major industrial establishments.

These orders entail the installation of Gas Insulated Substations along with the corresponding High Voltage Cable Systems. Additionally, the Power Transformers and Control & Protection systems will be other essential components incorporated into the project.

Back home, the company has been awarded a contract in India to construct a 765kV Transmission Line. This will play a vital role in enabling the transfer of renewable energy generated from the Wind and Solar Energy hub being developed in the areas close to Kurnool, Andhra Pradesh.

“These are secured on the back of demonstrated abilities to manage interface and shutdown-related challenges”, the company said in a press release statement. “The orders reflect the customer’s trust in L&T”.

In the quarter ending March, L&T announced a profit of Rs 3,986 crore, marking an 11 percent increase from Rs 3,620 crore in the same quarter of the previous year. The company’s operating revenue for the fourth quarter of FY22 stood at Rs 58,335 crore, reflecting a growth of 10.4 percent compared to Rs 52,850 crore in the corresponding period.

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