L&T wins large contract from Indian Oil

The hydrocarbon onshore division of Larsen & Toubro’s (L&T) energy business has secured a large contract from Indian Oil Corporation Ltd.

A project worth ₹2,500 crore to ₹5,000 crore is classified as a large project by L&T.

India’s largest state-run oil marketing company is implementing the Panipat refinery expansion (P-25) project to enhance refining capacity from 15 million metric tonnes per annum (MMTPA) to 25 MMTPA to meet the growth in demand of petroleum products and to increase their profitability and competitiveness in the long run.

The engineering, procurement, construction, and commissioning (EPCC) contract is for setting up a Residue Hydrocracker Unit (RHCU) for this P-25 Project, Larsen & Toubro says in a statement.

The contract is awarded through international competitive bidding on a Lump Sum Turnkey (LSTK) basis, it adds.

L&T had earlier bagged a significant EPCC Contract for setting up a unit under the same P-25 Project of IOCL at Panipat refinery.

The hydrocarbon business of L&T Energy is organised under Offshore, Onshore, Construction Services, Modular Fabrication and Advanced Value Engineering & Technology (AdVENT) verticals.

Last month, L&T posted consolidated net profit of ₹1,702 crore, registering a robust growth of 45% over the corresponding quarter of the previous year.

The construction giant reported revenues of ₹35,853 crore for the quarter ended June 30, 2022, recording a year-on-year growth of 22% with strong execution witnessed in the infrastructure segment, according to its exchange filing. International revenues during the quarter at ₹13,235 crore constitute 37% of the total revenue.

The company secured orders worth ₹41,805 crore at the group level during the quarter ended June 30, 2022, registering a growth of 57% over corresponding quarter of the previous year.

During the quarter, orders were received across diverse segments like public spaces, metros, water management and waste water, minerals and metal, factories, data centres, defence, power transmission and distribution, and hydrocarbon offshore sectors.

International orders at ₹17,842 crore during the quarter comprised 43% of the total order inflow.

The consolidated order book of the group is at a record ₹3,63,448 crore as on June 30, 2022, with international orders having a share of 28%.

The energy projects segment secured orders valued at ₹4,366 crore during the first quarter, registering substantial growth compared to corresponding quarter of the previous year, with receipt of a large order from the Middle East in the offshore vertical of hydrocarbon business. International order inflow constituted 91% of the total order inflow of the segment during the quarter. The segment order book was at ₹ 65,372 crore as on June 30, 2022, with the international order book constituting 58%.