This order is for stage-I & II (6x210 mega watt (MW) & 2x500 MW and is in continuation to the order received for Stage III 0 IV (2x500 MW 0 2x500 MW) in September last year, the company said in a BSE filing.
The company did not provide value of the contracts but said the orders fall under "significant" category which ranges between Rs 1,000 crore and Rs 2,500 crore as per its classification of contracts.
Last week, L&T said the consortium of L&T Hydrocarbon Engineering and EMAS AMC PTE Ltd. (A Subsea7 Company) has been awarded a project by Saudi Aramco. This project consists of twenty eight offshore jackets in ZULUF, MARJAN, SFANIYA Et RIBYAN offshore fields of Saudi Arabia.
Post the Union Budget presentation, L&T has underperformed the market by falling 18 per cent, as compared to 8 per cent decline in the S&P BSE Sensex till Friday, August 23, 2019.
However, most of the analysts maintain ‘buy’ rating on L&T on the expectation that order bidding pipeline worth Rs 8.5 trillion woyuld ensure 10-12 per cent order inflow growth in FY20E. In the April-June quarter, orders from the central and state governments were impacted due to general elections.
L&T has consistently been delivering in terms of bagging orders, strong order execution, though with some temporary concerns on working capital management owing to tight liquidity scenario, analysts at ICICI Securities said in a report.
Analysts at Anand Rathi Share and Stock Brokers believe that the forthcoming capex in select private sectors and in the Railways will lead to healthy inflows for the L&T. With a strong book, we believe that sales growth will be healthy and margins are likely to sustain or improve from current levels. Further, monetization of non-core assets will help the company release capital and improve return ratios, the brokerage firm said in company update.