Engineering and construction giant Larsen & Toubro Ltd (L&T) on Friday said its heavy civil infrastructure business vertical has won a 'mega order' from the Mumbai Metropolitan Region Development Authority (MMRDA). A project worth ₹7,000 crore or more is classified as a mega project by L&T.
As part of the deal, L&T's construction unit will design and build an underground road tunnel project between Orange Gate, Eastern Freeway and Marine Drive Coastal Road in Mumbai.
The major scope of work for the project comprises design and construction of twin road tunnels, using Tunnel Boring Machines (TBMs), connecting these tunnels to the existing elevated Eastern Freeway at Orange Gate near its southern terminal through transition ramps and to the Marine Drive at Mumbai, the conglomerate says in a stock exchange filing.
The project alignment will run primarily under the Sardar Vallabhbhai Patel Road and is to be completed within 54 months, the filing says.
"L&T has significantly enhanced its capability of building faster and reliable mass transit systems and this project is in line with our strategic goals," it adds.
Reacting to the development, shares of L&T rose as much as 1% to ₹3,057 apiece on the BSE. The company's market capitalisation stood at ₹4.26 lakh crore.
Earlier this month, L&T and BAE Systems partnered to bring an all-terrain vehicle, the BvS10, to the Indian market. The two companies have signed an agreement to offer the BvS10 for an Indian Armed Forces program. Under the agreement, L&T is the prime bidder for the Indian market, with the support of BAE Systems Hägglunds, the Swedish manufacturer of the BvS10 family of vehicles. BAE Systems and L&T have upgraded the BvS10 to meet the specific requirements of the Indian Armed Forces.
L&T has also signed an agreement with Spain-based Navantia to bid for the Indian Navy's P75 submarine programme. The project is expected to be valued at over ₹43,500 crore.
In August, the construction giant's power transmission and distribution business secured a large order in the Middle East. A project worth ₹2,500 crore to ₹5,000 crore is classified as a large project by L&T. L&T's buildings & factories (B&F) business also secured orders in India and Bangladesh. It includes an order from the Uttar Pradesh Cricket Association for the construction of a cricket stadium at Varanasi.
For the quarter ended June, L&T clocked a 46.5% year-on-year (YoY) growth in consolidated net profit at ₹2,493 crore from ₹1,702 crore in the corresponding quarter of the previous year. Revenue stood at ₹47,882 crore for Q1 FY24, recording a year-on-year growth of 34%, primarily aided by the execution of a healthy opening order book in its projects and manufacturing portfolio. International revenues during the quarter were at ₹19,022 crore, constituting 40% of the total revenue. The board of the company had earlier announced a share buyback worth ₹10,000 crore, the first ever in the company’s 85-year history.
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