Rs 5,64,223 Crore Order Book: Civil Construction Company Secures Largest Ever Work Order From Qatar Energy LNG
The stock is up by 3 per cent from its 52-week low and has given multibagger returns of over 200 per cent in the last 5 years.
Larsen & Toubro Limited (L&T) has achieved a significant milestone by securing its largest-ever contract from QatarEnergy LNG for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4). This Ultra Mega Offshore Contract, awarded to L&T's Hydrocarbon Business, involves comprehensive engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes. These complexes will include large offshore platforms with compression and power generation facilities, living quarters, flare platforms, and interconnected bridges, located approximately 80 kilometers off the northeast coast of Qatar.
Mr. S N Subrahmanyan, Chairman & Managing Director of L&T, stated, "Securing QatarEnergy LNG's Ultra Mega Offshore Contract—the largest single order in our history, is a landmark achievement. This prestigious project strengthens our global energy portfolio while supporting Qatar's energy security objectives." Mr. Subramanian Sarma, Deputy Managing Director & President of L&T, added, "The award of a project of such nature is a reflection of the confidence & trust placed by QatarEnergy LNG in L&T’s expertise and its ability to deliver such large-scale projects for which L&T is very thankful."
The Ultra-Mega Order consist of more than Rs 15,000 crore in value.
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.
According to Quarterly Results, the net sales increased by 17 per cent to Rs 64,668 crore and net profit increased by 14 per cent to Rs 3,359 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 18 per cent to Rs 1,81,343 crore and the net profit increased by 10 per cent to Rs 9,540 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 20.6 per cent to Rs 2,21,113 crore and the net profit increased by 23.33 per cent to Rs 15,570 crore in FY24 compared to FY23.
The company has a market cap of Rs 4 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns a 12.61 per cent stake in the company as of December 2024. The company has a robust order book valued at Rs 5,64,223 crore as of December 31, 2024. The stock is up by 3 per cent from its 52-week low and has given multibagger returns of over 200 per cent in the last 5 years. Investors must keep this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.