L&T firms up after subsidiary bags significant order from NCRTC

Larsen & Toubro (L&T) rose 4.39% to Rs 903.70 after L&T Construction bagged 'significant' contracts for its heavy civil infrastructure business.

The heavy civil infrastructure business of L&T Construction has secured two contracts to build Regional Rapid Transit System (RRTS) Infrastructure from National Capital Region Transport Corporation (NCRTC) in Uttar Pradesh.

The scope of the project is to execute a new, dedicated, high speed, high capacity rail system in the Delhi - Gaziabad - Meerut Corridor. RRTS is distinct from metro transit systems as it caters to passengers traveling relatively longer distances with fewer stops and at higher speed. The design speed for the project is 180 KMPH with an average operational speed of 100 KMPH.

The two contracts for RRTS have been secured for packages starting from Duhai to Modi Nagar and from Modi Nagar to Shatabdi Nagar for a total distance of approximately 32 Km viaduct including 7 elevated stations. These contracts have been bagged against stiff competition and are breakthrough projects with this customer.

As per the L&T's classification, the valuation of the 'significant' order stands between Rs 1,000 crore and 2,500 crore. The disclosure was made during market hours today, 15 April 2020.

Shares of L&T jumped 16.64% in six consecutive trading sessions to its current trading price of Rs 903.70 from its recent closing low of Rs 774.75 on Wednesday, 1 April 2020.

On a consolidated basis, the company's net profit rose 15.21% to Rs 2,352.12 crore on a 5.87% rise in net sales to Rs 36,242.68 crore in Q3 December 2019 over Q3 December 2018.

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.

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