L&T’s power transmission & distribution business bags order worth Rs 2400 crore

The construction arm of L&T has added another feather in its cap. The Company today has bagged an order worth Rs 2400 crore in both domestic and international markets. This is the fifth order that the construction arm of L&T has received in March 2017, aggregating to Rs 10668 crore orders.

The power transmission & distribution segment of L&T Construction has secured this order to build 400 kV transmission lines and substations, 33 kV primary substations and related cabling in Middle East and Africa. On the domestic front, company received orders to build 765kV and 400kV transmission lines across States.

Company’s infrastructure segment controls the power transmission and distribution business. Infrastructure contributed 75% to the total order book in FY16, of which power transmission & distribution contributed 12.3%.

However, looking at the bottlenecks, and thereby a lacklustre movement in the infrastructure sector, the company had reduced its order book target to 10% in FY17E as against the earlier expected target of 12-15%.

L&T’s actual order book as of December 2016 stands at Rs 258585 crore. The December order book was just 1.4 per cent higher, considering YoY performance. However, along with power and transmission segment, the construction arm has already helped L&T achieve nearly 4% of its order book in the month of March. So, we can wait and watch if the power transmission & distribution segment helps L&T to achieve its targets going forward.