The hydrocarbon engineering arm of L&T has signed a long-term agreement with McDermott International for subsea projects in deepwater segment in the east coast of India.
L&T Hydrocarbon Engineering Ltd (LTHE) has inked the agreement with McDermott to develop a cost-effective approach at the L&T subsidiary's Kattupalli facility near Chennai, L&T said in a regulatory filing today.
McDermott provides engineering, procurement, construction and installation (EPCI) services for offshore and subsea field developments worldwide. It delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning.
The pact will be used for fabrication and setting up of a local spool base in India. The versatile fleet and combination of reel lay and S lay methods for laying of subsea pipelines will be by McDermott, the filing added.
The agreement builds on successful collaboration between McDermott and LTHE which resulted in the recent Rs 2,450 crore order to the consortium of McDermott and LTHE for Vashishta Deepwater Greenfield development.
The company said it was successful in garnering fresh
orders worth Rs 1,36,858 crore at consolidated level during the year and international orders at Rs 43,956 crore constitute 32 per cent of the order inflow.
"Sixty two per cent of the total order inflow during the year was secured by the infrastructure segment. The order inflow for the quarter ended March 31, 2016 was at Rs 43,334 crore of which one third constituted international orders.
"Consolidated Order Book of the group stood at Rs 2,49,949 crore as on March 31, 2016, higher by 7 per cent on a y-o-y basis. International Order Book constituted 28 per cent of the total order book," the company said.
The Board of Directors recommended a dividend of Rs 18.25 per equity share.
Segment wise, infrastructure segment achieved revenue of Rs 48,797 crore for the year ended March 31, 2016 registering a y-o-y growth of 12 per cent, on progress of jobs under execution.
International revenue constituted 30 per cent of the total customer revenue of the segment during the year.
"For the quarter January-March 2016, the Customer Revenue of Infrastructure segment was at Rs 18,077 crore recording a y-o-y increase of 20 per cent. In a challenging business environment, infrastructure segment secured fresh orders of Rs 84,817 crore, during the year ended March 31, 2016."
It said the order inflow during the year was mainly contributed by building & factories, power transmission & distribution and transportation infrastructure businesses. International orders at Rs 24,199 crore constituted 29 per cent of the total order inflow of the segment during the year.
Power segment recorded revenue of Rs 6,993 crore during the year ended March 31, 2016, registering an impressive growth of 48 per cent over the previous year as projects under execution achieved substantial progress.
Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 15 billion in revenue.
Shares of the company closed at Rs 1,291.30 on the BSE, up 4.02 per cent from previous close.
