L&T bags contract worth Rs 2,500-5,000 crore from Indian Oil Corp

Engineering and construction major L&T on Monday said it has secured a large contract from Indian Oil Corporation (IOCL). Any contract falling in the range of Rs 2,500-5,000 crore in value is considered to be large.

IOCL is implementing the Panipat Refinery expansion (P-25) project to enhance refining capacity from 15 MMTPA to 25 MMTPA to meet the growth in demand for petroleum products and to increase their profitability and competitiveness in the long run. The contract awarded through international competitive bidding is for setting up a Residue Hydrocracker Unit (RHCU) for this Panipat project, the engineering company said in a statement.

“We are very delighted to be part of this large expansion project of IOCL Panipat. I would like to thank IOCL for having trust in our capabilities. We are fully committed to delivering the complex process units with high standards of HSE and quality,” said Subramanian Sarma, Whole-time Director and Senior Executive Vice President (Energy). Earlier, L&T earlier bagged a significant contract for another project under the same P-25 project of IOCL at Panipat. Order in the range of Rs 1,000-2,500 crore is considered to be significant.

Coming to the firm’s earnings, it reported a consolidated net profit of Rs 1,702 crore for the quarter ended June 30, 2022, as compared to Rs 1,174 crore recorded in the corresponding period of the last year, registering a year-on-year growth of 45 percent. It achieved consolidated revenues of Rs 35,853 crore for the quarter ended June 30, 2022, recording year-on-year growth of 22 per cent with strong execution witnessed in the infrastructure segment.

International revenues during the quarter under review stood at Rs 13,235 crore, which is 37 per cent of the total revenue. The company secured orders worth Rs 41,805 crore at the group level during the quarter ended June 30, 2022, registering a growth of 57 per cent over the corresponding quarter of the previous year.

During the quarter, orders were received across diverse segments like Public Spaces, Metros, Water Management and Waste Water, Minerals and Metal, Factories, Data Centers, Defence, Power Transmission and Distribution and Hydrocarbon Offshore sectors. International orders during the first quarter of the current financial year stood at Rs 17,842 crore, which is 43 per cent of the total order inflow.

The consolidated order book of the group is at a record Rs 363,448 crore as of June 30, 2022, with international orders having a share of 28 per cent.

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