L&T shares rally to record high on bagging Rs 2,500-crore urea plant deal

Shares of Larsen and Toubro gained over 1 percent to hit an all-time high of Rs 2,726 on August 23, after the company secured a Rs 2,500-crore contract for setting up a 2.3-MMTPA urea plant for Perdaman Chemicals and Fertilizers Pty in Australia.

Larsen & Toubro on Monday said its energy hydrocarbon business has bagged a contract from the Saipem & Clough JV (SCJV), Australia, for fabrication and supply of process and pipe rack modules for a 2.3-million-tonne-per-annum (MMTPA) urea plant for Perdaman Chemicals and Fertilisers. The value of the order is around Rs 2,500 crore.

It will be the largest urea plant in Australia and one of the largest in the world. Australia imports urea from West Asia for domestic use. Perdaman will use 50 percent of urea from the plant for domestic supply and the rest will be exported.

Besides, L&T Heavy Engineering has also secured multiple orders for the complete package of urea equipment for the same project.

“This milestone aligns with our strategic goal of expanding geography and client base and underscores our commitment to extend the concept of modularization to onshore projects,” Subramanian Sarma, Whole-Time Director and Senior Executive Vice President of L&T’s Energy business, said.

At 10:27am, the shares of L&T were trading 1.31 percent up at Rs 2,714 on the BSE. In the past 6 months the scrip has gained 25.70 percent and 29.89 percent year to date.

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