Larsen & Toubro gains for second straight day on winning two large orders

Shares of Larsen & Toubro (L&T) rose 3 per cent to Rs 832 on Wednesday, extending their previous day’s 3.5 per cent gain on the BSE, after the engineering and construction giant won two large orders from state-owned companies.

L&T today announced that L&T Hydrocarbon Engineering, a wholly owned subsidiary of the company has been awarded a large project by Indian Oil Corporation Limited (IOCL). The company said it has won a large contract from the Indian Army for setting up an advanced IT-enabled system to operate the Armed Forces network under the Network of Spectrum (NFS).

Although the company did not mention the exact value of the contract, according to its project classification, the value of a large order ranges between Rs 2,500 crore and Rs 5,000 crore.

“The engineering, procurement, construction and commissioning (EPCC) contract is for setting up a new 9 MMTPA Atmospheric & Vacuum Distillation Unit (AVU) and allied facilities (EPCC-1 package) for Barauni refinery capacity expansion project at IOCL's Barauni Refinery, Bihar. The capacity of Barauni Refinery is being augmented from current installed capacity of 6.0 MMTPA to 9.0 MMTPA,” L&T said in a press release.

The Smart World and Communication Business of L&T Construction has secured a large order from the Indian Army to establish a unified network management system to manage, support and operate the countrywide Armed Forces Network under the NFS, the company said in a statement.

With the past two days' gain, L&T's stock has recovered 26 per cent from its multi-year low of Rs 661, touched on March 25, 2020. The stock hit a 52-week high of Rs 1,607 on May 28, 2019.

At 10:05 am, L&T was trading 2.2 per cent higher at Rs 820, against 1.7 per cent rise in the S&P BSE Sensex. A combined 1.7 million shares have changed hands on the counter on the NSE and BSE so far.