Top EPC Player Wins Big Contracts in Steel & Alumina Sectors – Growth Ahead?
Key Contracts Signed for Greenfield Alumina Refinery and Pellet Plant
L&T’s Minerals & Metals (M&M) business has secured large orders in the steel and alumina sectors. The company will set up an 850 KTPA greenfield alumina refinery plant for Hindalco in Odisha. The order includes engineering, procurement, construction, and installation. L&T has been a key partner for Hindalco for over three decades, contributing to their expansion across alumina, aluminum, and copper plants.
Expansion in the Steel Sector
M&M has also won an order for an 8 MTPA pellet plant from a leading steel producer in India. The scope of work includes engineering, manufacturing, supply, construction, and installation, with collaboration from reputed technology providers. This strengthens L&T’s leadership in EPC projects for steel and alumina refinery plants.
Economic and Market Overview
The Indian economy has shown slower growth in recent quarters, with urban consumption affected by tightened lending norms. However, rural consumption remains strong due to steady agricultural activity. Public investment has slowed, but improved government spending is expected to drive recovery. Globally, economic uncertainties persist due to geopolitical conflicts and trade tensions.
Company Performance and Order Growth
L&T reported record order inflows of Rs 1.16 trillion for Q3 FY25, a 53 per cent increase year-on-year. The Projects & Manufacturing segment secured Rs 987 billion in orders, growing 64 per cent. The order book now stands at Rs 5.64 trillion, with international revenues contributing 51 per cent. Consolidated PAT for Q3 FY25 grew 14 per cent to Rs 33.6 billion.
Future Outlook and Strategic Plans
L&T expects strong infrastructure investments post-elections, with GDP growth projected at 6.5 to 6.8 per cent for FY25. The company is confident in surpassing 10 per cent growth guidance for order inflows, with a strong pipeline of projects. Despite challenges like delayed payments and global trade uncertainties, L&T remains focused on profitable growth and operational efficiency.
Disclaimer: The article is for informational purposes only and not investment advice.