Mumbai: Larsen & Toubro (L&T) has confirmed bagging contracts valued at Rs8.53 billion ($211 million) from local and overseas customers.
Abu Dhabi Water and Electricity Authority placed an order valued at Rs 3.66 billion to supply and install two electricity substations at Saadiyat Island. Another Rs 4.87 billion worth of orders have been placed with various Indian companies.
The engineering company reported a better-than-expected 50% rise in fourth-quarter profit. It also said that it would benefit from higher spending on roads, ports and utilities in India to sustain the fast pace of growth after China among the world’s major economies.
According to finance minister, India needs to spend as much as $475 billion over the next five years to improve its infrastructure.
Orders in the kitty
The company has bagged an order of Rs 2 billion from the Power Grid Corp. It has received a contract valued at Rs 1.95 billion from the Tamil Nadu Water Supply and Sewerage Board to set up pipelines in three districts of the southern state.
The company has also got a contract from the Delhi Jal Board valued at Rs 925 million to set up a water transmission project. It has, along with its joint venture partner, got an order from the government of Andhra Pradesh valued at Rs 3.32 billion for an irrigation project.
A Rs 542-crore order by Indian Oil Corporation Ltd (IOC) for construction related work at its Panipat refinery has also been confirmed.
The order is for the Motor Spirit Quality (MSQ) upgradation unit located at IOC’s refinery at Panipat in Haryana, its associated utilities and offside facilities to meet Euro IV norms, L&T said in a filing to BSE.
IOC intends to operate this MSQ upgradation unit and necessary utilities and offside as part of their fuels upgradation project, it added.
Jacobs H&G Pvt Ltd (JH&G) has been retained by IOC to provide services for project management consultancy and front- end engineering design.
This order comprises the residual process design, detailed engineering, construction, installation, and performance guarantee test runs for the said project.
The IOC order was bagged by the company against keen competition from EPC contractors, on the back of its track record in meeting refinery project quality requirements and conforming to stringent delivery schedules, L&T said.
In a bid to open up the private defence market further, the government is likely to announce a list of private companies which will manufacture weapon systems for the armed forces.
The list is expected to comprise 12 private sector firms with a turnover of Rs 1,000 crore - to be called Raksha Udyog Ratnas (RURs), or defence production jewels.
The list may include Larsen and Toubro (L&T), Tata Group, Godrej, Mahindra and Mahindra, Bharat Earth Movers. L&T spokeman said that this would give an opportunity for the company to grow further in the country’s defence manufacturing market.