L&T wins another offshore order from ONGC worth up to ₹2,500 crore
L&T Construction has secured a 'large' order for the construction of the Bhogapuram International Airport in Andhra Pradesh. Orders in the ₹2,500 crore to ₹5,000 crore range are considered 'large' as per the company.
The Energy Hydrocarbon vertical of engineering and infrastructure conglomerate Larsen & Toubro Ltd. has won an order from ONGC Ltd., for the eighth phase of the Pipeline Replacement Project off India's west coast.
L&T has classified the order as "significant", which means that the order value is in the range of ₹1,000 crore to ₹2,500 crore.
This order involves engineering, procurement, construction, installation and commissioning of 129-km subsea pipelines and associated modification work across India's west coast offshore fields of ONGC.
Earlier in June, L&T had won a "large" offshore order from ONGC for its Daman Upside Development Project - Wellhead Platforms & Pipelines off India's west coast.
"This order reflects ONGC’s continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects," Subramanian Sarma, the Whole-time Director & President - Energy at L&T, was quoted as saying.
For financial year 2025, L&T expects to win 10% more orders than it did in financial year 2024. It also expects its topline to grow by 15% from the year gone by. However, the company guided for margins to be at 8.25% for financial year 2025. The guidance estimate among analysts ranged from 9% to 9.5% for the year.
Shares of Larsen & Toubro are trading 0.9% lower on Monday at ₹3,517, despite the order win. The stock has remained flat so far in 2024.