Rs 4,69,800 crore order book: This multibagger civil construction company bagged order from ONGC Ltd
The order categorized as 'significant' has an estimated value ranging from Rs 1,000 crore to Rs 2,500 crore
Larsen & Toubro (L&T), a leading Indian multinational, has secured a significant order from the Oil & Natural Gas Corporation Ltd (ONGC), India's national oil and gas exploration company. The project, known as the MHN TCPP PGC BGC Project (MTPBP), is located off India's west coast and is expected to contribute positively to L&T's financial performance.
Based on the company's statement, the order categorized as 'significant' has an estimated value ranging from Rs 1,000 crore to Rs 2,500 crore.
Project Scope:
The project involves several key aspects:
- Building new gas compression units (PGC modules): These units are crucial for boosting the pressure of natural gas, enabling efficient transportation from offshore wells to processing facilities.
- Upgrading existing infrastructure: L&T will also upgrade existing facilities at ONGC's Mumbai High and Tapti offshore locations to enhance overall production capacity.
- Full-service contract: The contract encompasses the entire project lifecycle, including engineering, procurement, construction, installation, and commissioning (EPCIC) services.
Financial Implications:
While the specific value of the contract remains undisclosed, its significance can be understood through several factors.
- Project size: The extensive scope, encompassing new construction and upgrades across multiple locations, suggests a substantial contract value with a positive impact on L&T's top line (revenue).
- L&T's expertise: L&T's proven track record in handling large-scale oil & gas projects often translates into premium pricing and potentially higher profit margins. This contract is expected to contribute positively to both revenue and profitability.
- Strategic positioning: Successfully executing this project strengthens L&T's position in the oil & gas sector, potentially leading to future contracts and solidifying the company's role in India's energy security efforts.
In conclusion, securing this contract from ONGC is a significant win for L&T, offering both immediate financial benefits and positive long-term implications for the company's position within the Indian oil & gas sector.
L&T Ltd is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. Today, the shares of L&T Ltd surged to Rs 3,665.75 up 0.61 per cent with an intraday high of Rs 3671.55 per share from its previous closing of Rs 3643.65.
The stock is up by 71.20 per cent since past 1 year low and gave multibagger returns of 150.39 per cent in the last 3 years. Investors must keep this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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