L&T share price gains after bagging large offshore order from ONGC

Shares of Larsen and Toubro (L&T) soared 2.3 per cent at Rs 3716.80 per share on the BSE in Thursday’s intraday trade.The stock is trading close to its 52-week high of Rs 3,948.60, hit on June 03, 2024. 

This came after L&T Energy, the hydrocarbon vertical of the L&T, secured a large order from the Oil & Natural Gas Corporation (ONGC) for the Daman Upside Development Project, which encompasses wellhead platforms and pipelines (DUDP-WP) situated off the west coast of India.

The scope of work includes engineering, procurement, construction, installation, and commissioning of four wellhead platforms, 140-km pipeline and associated topside modifications at Tapti Daman block at a Western offshore location, the company said in an exchange filing on Thursday. According to L&T the order amount falls in the range of Rs 2,500 crore to Rs 5,000 crore. 

Larsen & Toubro is a $27 billion Indian multinational enterprise engaged in EPC projects, hi-tech manufacturing, and services, operating across multiple geographies.

In the fourth quarter of the financial year 2023-24 (FY24), the company posted a consolidated net profit of Rs 4,396.12 crore,a 10.3 percent increase year-on-year (Y-o-Y) from Rs 3,986.78 crore. Sequentially, net profit surged by 49 percent from Rs 2,947.36 crore.

Revenue from operations also rose by 15 percent to Rs 67,078.68 crore. This compares to Rs 58,335.15 crore reported during the same period last year. Sequentially, revenue rose by 21.6 percent from Rs 55,127.82 crore in Q3.

For the quarter ending March 31, 2024, L&T recorded an order inflow of Rs 72,150 crore, marking a marginal decrease of five percent compared to the corresponding quarter of the previous year. However, domestic order inflow grew by 17 percent Y-o-Y, while international orders constituted 35 percent of the total.