L&T hits new highs on winning key contracts for various businesses
After construction and engineering major L&T Construction, shares of Larsen & Toubro (L&T) hit a new high of Rs 1,638.65 on BSE in intra-day trade on Monday in an otherwise weak market, L&T Construction said. The manufacturing unit of the company has won several orders for its various businesses in India and abroad. According to L&T, the order value is between Rs 1,000 crore and Rs 2,500 crore.
The stock was trading with gains in the sixth trading session. It surpassed its previous high of Rs 1,624.90 touched on July 15, 2021. In comparison, the S&P BSE Sensex was down 0.68 per cent at 52,781 points at 11:40 am. In the past one week, L&T has outperformed the market with a gain of 9 per cent as against a gain of 0.72 per cent in the benchmark index.
The power transmission and distribution business has received an order to build 220kV transmission lines for system strengthening in the Ladakh region. The design and execution of this system covers avalanche prone, mountainous areas and snow loading of conductors.
Another turnkey order has been received for urban power distribution in Ayodhya city under Integrated Power Development Scheme.
Meanwhile, globally, the company has bagged an order to design, supply, build, install, test and commission a 132/11kV substation with associated cable works in the city of Dubai. Additionally, two transmission line packages have been secured in Africa, L&T said in a press release.
“The factories business has bagged a prestigious order from a leading cement manufacturer in India for construction of a 1.8 MTPA Grinding Unit at Dolvi, Maharashtra. The scope includes civil, mechanical and equipment installation works,” the company said.
The Board of L&T is scheduled to meet on July 26, 2021 to consider and approve the unaudited financial results of the company for the quarter ended June 30, 2021 (Q1FY22).
Considering the resumption of ordering activity on large multilateral projects like high-speed rail, analysts expect an improvement in demand and help in placing orders from similar projects in sectors like metro, water etc. Will get
The infrastructure segment accounts for 75 per cent of L&T’s consolidated order book. Given the scale of India’s infrastructure deficit, the company remains optimistic about the government’s intent to complete around 7400 projects, as envisaged in the National Infrastructure Pipeline, which will total Rs 111 trillion by FY25. is.
“The project pipeline is expected to be funded by the central government, state governments and PSUs collectively up to 79 per cent, with the remaining 21 per cent envisaged to come from the private sector,” L&T said in fiscal year 2020. 21 (FY21) Annual Report.
The outlook for FY21-22 is one of cautious optimism, with the country’s GDP reverting to positive territory in the first half due to the base effect, followed by strong growth in the second half. “While the current resurgence of COVID-19 may dent the prospects in the early part of the year, vigorous vaccination efforts and better adherence to safety protocols should lead to a revival in the latter. We therefore believe that the recovery is ‘delayed’. It is not ‘derailed’,” L&T said.