L&T wins 'major' orders in West Asia, Africa to expand high-voltage grid

Larsen & Toubro’s (L&T) Power Transmission & Distribution (PT&D) vertical has secured new orders in West Asia and Africa aimed at expanding and strengthening high-voltage electricity grids, the company announced in an exchange filing on Wednesday. The contracts, classified as 'major', are estimated to be valued between Rs 5,000 crore and Rs 10,000 crore.

Among these projects is a consortium agreement with a leading original equipment manufacturer to construct the new National System Control Centre for Kenya. This transmission hub will play a critical role in managing the country's power flow by integrating diverse energy generation sources and dispatching electricity based on merit order. The control centre is expected to enhance the stability, efficiency, and reliability of Kenya’s grid, according to the company.

This initiative is especially important with the increasing integration of variable renewable energy sources and high-voltage regional interconnections. Additionally, the project includes implementing a backup energy management system at a remote location.

L&T aims to leverage its extensive experience in executing transmission and distribution projects, along with its expertise in Digital Energy Solutions, to deliver this initiative effectively.

In West Asia, L&T has also secured new orders for the turnkey construction of high-voltage transmission lines in Saudi Arabia, along with additional gas-insulated substation contracts related to an ongoing power system expansion project in Qatar.

This announcement comes ahead of L&T’s second-quarter results for the financial year 2024-25 (Q2FY25), which are scheduled to be released later today. Analysts expect core profit growth between 12 per cent and 19 per cent for the July–September quarter. L&T’s domestic execution is expected to have normalised following the 2024 Lok Sabha elections, bolstered by a robust order book and a returning workforce, as earlier reported by Business Standard.

The company’s overall revenue is projected to grow by 14.3 per cent to Rs 58,300 crore, compared to Rs 51,000 crore in the same quarter last year. However, profit for the quarter is expected to have declined by 2.1 per cent year-on-year and 13.3 per cent sequentially to Rs 3,200 crore. In terms of operational performance, L&T's earnings before interest, tax, depreciation, and amortisation (Ebitda) are likely to have increased by 5.6 per cent to Rs 6,000 crore, up from Rs 5,600 crore in the corresponding period last year.