L&T secures ‘ultra-mega’ order worth at least ₹15,000 crore, marking 10th win in a month

L&T secures 'ultra-mega' order worth at least ₹15,000 crore, marking 10th win in a month


Larsen and Toubro on Monday, August 17, said L&T Energy Hydorcarbon (LTEH) Offshore has won an “ultra-mega” order from a renowned client in the West Asia region. This marks the 10th order that L&T has disclosed over the last one month, most of which include “large”, “Mega”, and “Ultra-Mega” orders.

L&T classifies orders above ₹15,000 crore as “ultra-mega”.

Starting July 20, L&T has reported a total of 10 order wins — one “large” order and three “major”, “mega” and “ultra-mega” orders each. This takes the total amount of the orders to ₹92,500 crore at the lower end of the classification range, to ₹1.25 lakh crore at the upper end of the range during this period.

Date Order Worth (In Crore)
20-Jul Mega ₹10,000 – ₹15,000
24-Jul Large ₹2,500 – ₹5,000
27-Jul Major ₹5,000 – ₹10,000
28-Jul Ultra-mega ₹15,000 +
29-Jul Major ₹5,000 – ₹10,000
30-Jul Mega ₹10,000 – ₹15,000
4-Aug Ultra-mega ₹15,000 +
7-Aug Major ₹5,000 – ₹10,000
13-Aug Mega ₹10,000 – ₹15,000
17-Aug Ultra-mega ₹15,000 +

L&T on Monday, August 17, said the project involves the development of multiple offshore facilities.It said LTEH Offshore will execute the project scope encompassing engineering, procurement, construction, installation and commissioning of onshore facilities. A significant portion of the fabrication activities will be carried out at L&T’s integrated, manufacturing and fabrication facilities, the company said.

The scale and complexity of the project call for deep engineering expertise, integrated project execution capabilities and flawless coordination across multiple workstreams, T Madhava Das, the whole-time director, senior executive vice-president and head-energy hydrocarbon division of L&T, said.

“With multiple offshore facilities, subsea infrastructure and substantial fabrication requirements, this project exemplifies the scale and complexity of offshore developments that LTEH Offshore is uniquely positioned to delivery, Parthasarathi Chatterjee, senior vice-president and head of LTEH Offshore, said.

L&T reported a mixed set of earnings in the June quarter, with its earnings before interest, taxes, depreciation and amortization (EBITDA) missing estimates. However, its order inflow delivered a positive surprise.

L&T management has held on to its guidance for the current fiscal year.

Two of the 33 analysts who have coverage on the L&T stock see it rising up to ₹5,000 apiece.

Shares of Larsen & Toubro are currently trading little changed at ₹4,057. The stock is still down 2% for the year.

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