L&T On A Roll, Bags Large Scale Orders Worth Rs 3655 Crore
Biswajit Yadav / 13 Mar 2014
Indian multinational conglomerate Larsen and Toubro (L&T) has bagged an international order worth Rs 3655 crore for designing and constructing an 11 km road called Al Wakrah Bypass road in Qatar. The company is trying to receive more orders from international markets mainly from Middle East. Timeframe given for the completion of the project is 32 months.
Today Larsen & Toubro (L&T) is trading higher by 1.1% at Rs 1231.95 on BSE (11:50 AM) from its previous close (Rs 1218.55) mainly due to obtaining the single largest road order from the international market. The company has bagged an International order worth Rs 3,655 crore (2.187 billion Qatari Riyal) from Ashghal (Public Works Authority), State of Qatar, for design and construction of a 11 km road called the Al Wakrah Bypass Road. The project is to be completed in 32 months. Till March 13, 2014 the company has bagged total order worth Rs 18012 crore.
The orders received by L&T from January 2014 to March 13, 2014.
| Order Book from January to March (Figure in Rs/crore) | ||
|---|---|---|
| Date | Orders Received by L&T | Amount |
| 6th Jan | Construction | 2962 |
| 7th Jan | Power T&D | 690 |
| 16th Jan | Hydrocarbon | 1000 |
| 28th Feb | Construction | 5220 |
| 3rd Mar | Transportation | 1550 |
| 10th March | Construction | 2935 |
| 13th Mar | Transportation | 3655 |
| Total Order | 18012 | |
The company has received two large scale orders from two business segments, one from transportation worth Rs 3655 crore on March 13, 2014 and on February 28, 2014 of Rs 5220 crore in the construction business. This depicts that, inspite of sluggish economy the infrastructure business is doing well. Till March 13, 2014 the company has received total order worth Rs 18012 crore. The two large scale orders in the construction segment during this quarter were of Rs 5220 crore and Rs 2935 crore.
| L & T Construction order worth Rs 5220 crore & Rs 2935 crore | ||
|---|---|---|
| Business | Amount | Amount |
| Building & Factories | 562 | 1461 |
| Water & Renewable Energy | 553 | 2019 |
| Transportation | 1035 | 0 |
| Power T&D | 502 | 1001 |
| Heacy Civil Infrastructure | 283 | 739 |
| Total Order | 2935 | 5220 |
The above table shows that the company has bagged hefty orders from various business segments. The infrastructure segment is driven by building and factories, power transmission and distribution, water & renewable energy business. The total order received by the company from 1st January to March 13, 2014 is Rs 18,012 crore as compared to Rs 21,722 crore during September to December 31, 2013.
| Order Book of L & T (Figure in Rs/crore) | |||
|---|---|---|---|
| Quarter | National | International | Total |
| December 31' 2013 | 13485 | 8237 | 21722 |
| March 13' 2014 | 12117 | 5895 | 18012 |
| Total | 25602 | 14132 | 39734 |
The company is trying to receive more orders from international markets mainly from Middle East. The main reason for expanding overseas is due to the continuous cash flows, as the numbers of orders are high as compared from the domestic market. Although the competition is high and margins are low, the bulk orders will be able to generate a handsome profit for the company.
Looking at the order inflows we expect the stock to perform well in future. Due to presence in diverse sectors and in different countries it is expected that the company will be able to steer the medium term challenges and will be able to meet its growth momentum in the future.
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