L&T Power transmission & distribution business win large contracts

Larsen & Toubro Limited’s (L&T) Power transmission & distribution (T&D) business has bagged large contracts from various entities. The value of these contracts ranges between Rs 2,500 and Rs 5,000 crore.

It has won a major infrastructure project in Telangana, which involves establishing three new 400 kV substations with reactors, associated bay extensions at connected substations, and more than 170 km of 400 kV transmission links, on a turnkey basis.

It has secured another order from Konkan Railway Corporation Limited to provide electrical & mechanical systems for two tunnels in Katra Dharam section of Udhampur Srinagar Baramulla rail link project, which involves a 33 kV & 11 kV HT power cable network, GIS substation, DG sets, tunnel lighting, ventilation and firefighting systems as well as SCADA system.

Another order includes a power distribution package to replace bare conductors with aerial bunched cables received from North India. Additional orders have been received from the ongoing transmission line projects.

In Oman, the company has bagged a package to construct 400 kV overhead lines connecting three grid stations. These high capacity transmission lines will interconnect three major transmission systems to improve dispatch coordination and grid security. These will also enhance access to areas with renewable energy potential and enable reserves sharing. It has also received a repeat order from a reputed client in the Middle East.

During the June quarter of FY21, the company’s order inflow was Rs 23,600 crore. As of June 30, 2020, its order book stood at Rs 3,05,100 crore, which is 2.1x its consolidated revenue of FY20. Its order book comprises business segments like infrastructure-72 per cent, hydrocarbon-14 per cent, power-5 per cent, Defence engineering-3 per cent, heavy engineering-1 per cent and others-5 per cent.

On Monday, the stock of L&T opened at Rs 945.20. In the early morning session, it was up at Rs 950.25 and later dipped to 2.8 per cent to Rs 916.10 from its previous close of Rs 942.90 on BSE.