L&T's shares rally on reports of order win worth $4 bn from Saudi Aramco

On Tuesday, the shares of Larsen Toubro soared up to 3 per cent at Rs 3,634 per share on the BSE in intraday trade. According to reports, the construction major bagged a mega work orders worth Rs 30,000 crore or $4 billion from Saudi Aramco.

Saudi Aramco has awarded contracts totaling $25 billion for engineering, procurement, and construction (EPC) works along with other services for two significant gas expansion programs.

Reportedly, the Indian infrastructure company’s unit L&T Energy and Hydrocarbon won package 1 and 3 for Jafurah second expansion project. 

Saudi Aramco, formally known as the Saudi Arabian Oil Group, is the state-owned national oil company of Saudi Arabia, specialising in petroleum and natural gas operations.
 

On Monday, the company had bagged another offshore order from the Oil & Natural Gas Corporation (ONGC) for the eighth phase of Pipeline Replacement Project (PRPVIII Group B) off India's west coast, the company said in an exchange filing. The total amount of the work order ranges from Rs 1,000 crore to Rs 2,500. 

“The order involves engineering, procurement, construction, installation & commissioning (EPCIC) of 129-km subsea pipelines and associated modification works across India’s west coast offshore fields of the ONGC,” the company stated in a statement.

For the fourth quarter of fiscal year 2023-24 (Q4FY24), L&T reported a consolidated net profit of Rs 4,396.12 crore for Q4FY23-24, marking a 10.3 per cent YoY increase from Rs 3,986.78 crore.

Sequentially, net profit surged 49 per cent from Rs 2,947.36 crore. The company also saw a 15 per cent YoY increase in revenue from operations, reaching Rs 67,078.68 crore compared to Rs 58,335.15 crore last year. Sequentially, revenue rose 21.6 per cent from Rs 55,127.82 crore in Q3.

The large cap company has total market cap of Rs 4.96 trillion and is presently trading at a price to earnings multiple of 52.12 times with an earning per share of Rs 67.68.  

At 01:56 PM; the stock of the company was trading 2.36 per cent higher at Rs 3610.95 per share on the BSE. In comparison, the BSE Sensex was down marginally by 0.05 per cent at 79,434 levels.