Massive Rs 2,500+ Crore Order Win: L&T Construction to Transform Mumbai's Transportation Infrastructure

This project, commissioned by the Municipal Corporation of Greater Mumbai (MCGM), aims to construct a 4.5 Km long bridge connecting Dahisar and Bhayander.

Larsen & Toubro Ltd, a multinational conglomerate primarily engaged in providing engineering, procurement, and construction (EPC) solutions across various sectors, both domestically and internationally, has secured a substantial order in Mumbai, further bolstering its impressive order book.

As of FY23, the company boasts a record-high order book of approximately Rs 4 trillion, with an order inflow exceeding Rs 2 trillion in FY23 alone, marking a substantial 19 per cent increase compared to FY22. This robust order book includes a diverse mix, with 62 per cent of orders from domestic sources, 16 per cent from the USA and Europe, 19 per cent from the Middle East, and 3 per cent from the rest of the world.

Adding to its impressive portfolio, L&T Construction's Transportation Infrastructure business vertical has been awarded the prestigious Dahisar Bhayander Bridge project in Mumbai. This project, commissioned by the Municipal Corporation of Greater Mumbai (MCGM), aims to construct a 4.5 Km long bridge connecting Dahisar and Bhayander. Notably, this bridge is expected to significantly reduce the travel time between these two locations, which currently takes more than 45 minutes.

The 4.5 Km bridge will feature two separate carriageways, a multi-level interchange at Dahisar and Bhayander for seamless entry and exit, and two large navigational spans across the creek.

It's worth mentioning that L&T is already involved in executing two packages of the prestigious Mumbai Coastal Road projects, also for the Municipal Corporation of Greater Mumbai (MCGM).

In financial terms, L&T boasts a market capitalization of Rs 425,094 crore and has achieved a remarkable 3-year stock price compound annual growth rate (CAGR) of 50 per cent. In FY23, the company reported impressive net sales of Rs 183,341 crores and a net profit of Rs 12,531 crores, with a dividend payout ratio of 32 per cent.

On Tuesday, the company's shares surged to Rs 3,028 per share, reaching an intraday high of Rs 3,040.50 and a low of Rs 2,995.10. Notably, as of June 2023, the promoters of the company do not hold any stake in the company. Comparatively, the share price on October 3, 2022, stood at Rs 1,819.30, marking a remarkable 66.53 per cent increase over the past year, equivalent to 1,210.45 points.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.