The hydrocarbon arm of India's largest engineering and construction company has bagged orders worth over Rs 10,000 crore in a quarter for the first time, according to BloombergQuint's calculations.
L&T Hydrocarbon Engineering Ltd. won a “Mega” contract—worth at least Rs 7,000 crore—from Algeria's oil and gas explorer Sonatrach to set up three processing facilities, it said in an exchange notification yesterday. This makes it the largest order win for the subsidiary in the current fiscal and across all verticals of Larsen & Toubro Ltd. That's in addition to the two contracts L&T Hydrocarbon bagged from state-run oil marketer Indian Oil Corporation Ltd. to set up units at its Paradip refinery in January.
L&T Hydrocarbon has stopped giving exact order details from the current quarter but classifies them based on value. They are:
- Significant: Rs 1,000–2,500 crore.
- Large: Rs 2,500-5,000 crore.
- Major: Rs 5,000–7,000 crore.
- Mega: Greater than Rs 7,000 crore.
Subramaniam Sarma, managing director and chief executive officer of L&T Hydrocarbon Engineering, said the combined value of the two contracts from IOCL would fall in the “large” category.
CLSA said that with the Algerian order, L&T only needs 2–3 percent growth in the quarter ended March 2019 to achieve its order inflow guidance of 10–12 percent.
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