Larsen & Toubro gains 4% on winning multiple orders; up 10% in two weeks

Shares of Larsen & Toubro were up 4 per cent to Rs 1,403 on the BSE on Tuesday, after the company said its power transmission & distribution business has bagged a number of engineering, procurement and construction (EPC) orders in India and abroad.

At 10:43 am; L&T was the largest gainer among the frontline benchmarks, the Nifty 50 and S&P BSE Sensex. The benchmark indices were up 1.2 per cent each. A combined 2.74 million equity shares changed hands on both the exchanges.

The engineering and construction company, however, did not provide the exact value of the contract; but as per its project classification, the value of the contracts was in "significant" category which is in the range of Rs 1,000 to Rs 2,500 crore.

“In Andhra Pradesh, orders have been secured for design and construction of two 400kV substations and associated transmission lines. These substations and connected transmission systems form part of the 400kV ring network being implemented to ensure uninterrupted power supply for the state's new capital city, Amaravathi,” L&T said in a press release.

For the 2nd phase of Bangalore Metro, an order to execute the receiving substations and the extra high voltage cables from grid stations has been received. Another order to execute the power supply system and SCADA works for Mumbai Metro line 7 has been bagged, it added.

The company said another order for the design and construction of a 15MW grid connected floating solar farm has been received to be executed as part of Visakhapatnam Smart City project. This is among the biggest floating solar projects in India.

In Tamil Nadu, EPC orders have been secured from reputed developers for the implementation of solar power generating systems totaling 200MW. In the United Arab Emirates, an order has been bagged for the construction, supply, installation, testing and commissioning of a 132 /11kV substation and its associated works, it added.

In past two weeks, L&T has outperformed the market by gaining 10 per cent after bagging various orders. In comparison, the S&P BSE Sensex was up 4 per cent during the same period.

Last week, the company won a significant order from Oil & Natural Gas Corporation (ONGC). Its buildings and factories business had secured a prestigious order for the construction of campus development of IIT Hyderabad package 3A at Kandi, Telangana. The heavy civil infrastructure business of its construction arm had bagged "large" contracts from Bangalore Metro Rail Corporation.