Rs 4,909 billion order book: LIC-backed civil construction company makes new strides in Digital Energy Solutions business
The stock is up 30 per cent from its 52-week low and gave multibagger returns of 110 per cent in the last 3 years.
The Digital Energy Solutions (DES) arm of Larsen & Toubro's Power Transmission & Distribution (PT&D) business has been awarded a contract to develop and implement Energy Management Systems in regional and state load dispatch centers in South India. This is the latest in a series of digitally based intelligent projects being executed by L&T DES globally. DES is a specialized division of L&T's PT&D vertical, offering advanced grid services, energy consulting services, and system integration solutions to accelerate the digitalization of the electric grid in India, the Middle East, and the USA.
As part of the Southern India order, Energy Management Systems and associated software systems will be implemented for 12 sets of control rooms. These systems will be implemented for main and backup configurations for the Southern Regional Load Dispatch Centre (RLDC) and the State Load Dispatch Centers (SLDC) of Andhra Pradesh, Kerala, Puducherry, Tamil Nadu, and Telangana. L&T DES will implement this upgrade of control rooms with power system applications supplied by a leading OEM to monitor and control the energy flow in the electricity transmission network in real time to ensure reliable and secure grid operations. The upgrade work will leverage the L&T-Spark-CRIMTM (Control Room Integration Middleware) Platform to integrate substation data.
L&T DES is also implementing a similar upgrade of the power and transmission control room in the western United States. This project involves a complex configuration with more than 15 EMS hosts, deploying advanced applications to monitor and control the energy flow in real time. The scope includes the design and implementation of power and transmission network operation situational awareness to assist operators and analysts in improving grid reliability.
L&T is already executing a number of advanced grid modernization and digitalization orders in India, including the upgrade work in National and Regional Transmission Asset Management Centers consisting of 13 control rooms nationwide integrating 270 EHV transmission substations. On the Distribution Grid Management side, L&T DES is implementing advanced distribution management systems in Mumbai and Vadodara.
In addition to these projects, L&T DES is also implementing L&T-Spark-HECSTM (Hybrid Energy Management and Control System) to monitor and control the renewable hybrid plant of 185 MW Solar cum 254 MWH energy storage capacity which L&T is executing in Bihar. With the rapid growth of renewable hybrid plants, the business is engaged worldwide in providing Solar-Storage Power Plant Controller implementations for large renewable energy projects. L&T-Spark-PPCTM (Solar Power Plant Controller) is currently powering 6 solar plants with multiple gigawatts of peak production capacity ensuring full regional grid compliance in India and the Middle East regions.
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About the Company
Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.
The company has a market cap of over Rs 5 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns an 11.63 per cent stake in the company as of June 2024. The company has a robust order book valued at Rs 4,909 billion as of June 30, 2024. The stock is up 30 per cent from its 52-week low and gave multibagger returns of 110 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.