Larsen and Toubro (L&T) announced in an exchange filing that its hydrocarbon business, L&T Energy Hydrocarbon (LTEH), has secured a 'large' onshore project from IndianOil Adani Ventures Limited. L&T defines deals in the range of ₹2,500 crore to ₹5,000 crore as large contract. Amind this development, shares of L&T dipped 0.6% to ₹3,360.65 apiece on BSE.

“The earlier awarded projects under program-25 include Residue Hydro Cracker Unit (RHCU), Diesel Hydrotreater (DHDT) and Reactor Regenerator Package (RR),” the company says.

The project's scope encompasses engineering, procurement, construction, and commissioning of offsite tankages, bullets, and associated facilities on a lump-sum turnkey basis, as per the filing.

LTEH is executing four prestigious projects under the Indian Oil Corporation (IOCL)’s P-25 expansion programme. The earlier awarded projects under program-25 include Residue Hydro Cracker Unit (RHCU), Diesel Hydrotreater (DHDT) and Reactor Regenerator Package (RR).

Operating under various business groups such as Offshore, Onshore EPC, Modular Fabrication, Advanced Value Engineering & Technology (AdVENT), and Offshore Wind Farm, LTEH provides comprehensive design-to-build solutions across the hydrocarbon sector for both domestic and international clients, the company says.

In addition, LTEH had earlier secured a Letter of Intent (LoI) in October for an "Ultra-Mega" onshore project from a client in the Middle East, following a recent award for an Ultra-Mega Gas Compression plant.

Recently, L&T witnessed a decline of up to 7% in its shares on January 31, making it the leading underperformer on the stock exchanges, following the company's December quarter earnings falling below the expectations of the market analysts.

L&T issued its third-quarter financial results after-market hours, revealing a consolidated profit after tax (PAT) of ₹2,947 crore. This marks a 15% growth compared to the same quarter the previous year. The consolidated revenues for Q3 FY24 reached ₹55,128 crore, indicating a year-on-year growth of 19%. The increase is attributed to the accelerated execution of projects and manufacturing orders from a robust order book. International revenues for the quarter amounted to ₹24,300 crore, constituting 44% of the total revenue.

The company secured orders totaling ₹75,990 crore at the group level in the quarter concluding on December 31, 2023, reflecting a year-on-year growth of 25%. During the quarter, orders were received across various businesses like Offshore vertical of Hydrocarbon, Solar EPC & Power Transmission, Water Utilities, Buildings & Factories and Minerals & Metals sectors. International orders at ₹ 50,562 crore during the quarter comprised 67% of the total order inflow, as per company’s statement.

S.N. Subrahmanyan, Chairman and Managing Director said, “During the quarter ended December 2023, we made a foray into fabless semiconductor chip design. Our bold strides in new age sectors, including Digital Platforms, Data Centres, and Green Energy will pivot us into a technology – led conglomerate. We are currently witnessing improved Capex spends in both our primary geographies of India and Middle East.”

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