L&T Wins Its Largest Order Worth Over Rs 15,000 Crore From QatarEnergy LNG

Larsen & Toubro on Wednesday won an 'ultra mega' order from QatarEnergy LNG for its hydrocarbon business. The order is for the North Field Production Sustainability Offshore Compression Project in Qatar.

According to L&T's classification, 'ultra mega' orders are contracts above Rs 15,000 crore, according to the exchange filing.

The project includes engineering, procurement, fabrication, installation and commissioning of two offshore compression complexes. The compression complex will comprise of large offshore platforms with compression and power generation facilities, living quarters, flare platforms, interconnected bridges and other associated structures that will be located at approximately 80 kms off the northeast coast of Qatar.

This project, according to S N Subrahmanyan, Chairman and Managing Director, L&T, is the largest single order in its history and strengthens the company's global energy portfolio.

The infrastructure major's board earlier this week gave its nod for a Rs 12,000-crore fundraise plan. The targeted amount can be raised through "external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate."

Notably, L&T had posted a consolidated net profit of Rs 3,359 crore in the quarter ended Dec. 31, 2024, higher by 14% as compared to the year-ago period. The company's revenue from operations in the same period rose 17.3% year-on-year to Rs 64,668 crore.

L&T share price was trading 0.50% higher at Rs 3,487 per share around 12:52 pm after the announcement of the order. This compares to a 0.14% decline in the NSE Nifty 50 Index.

It has fallen 5.72% in the last 12 months and 5.66% year-to-date. The relative strength index was at 65.

Out of 35 analysts tracking the company, 29 maintain a 'buy' rating, three recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17.6%.