Larsen & Toubro’s order-book gets Rs 1,210 crore Qatari boost

Engineering company Larsen & Toubro has got an Rs 1,210 crore order to set up a 13 power sub-stations in Qatar. Its power and transmission division has got this order which has to be executed between 18 and 26 months. This is a relatively small order compared to its existing book of Rs 130,217 crore worth of orders in hand.

But it is significant as it comes at a time when projects in India appear to be slowing down, both in terms of new orders and execution. In June, L&T has announced getting orders or signing concession agreements with a total value of about Rs 9,700 crore, not including the Qatar order.

The earliest completion date for the sub-stations’ order is 18 months, and if L&T is able to meet that it can book substantial revenues from this project by 2012-13. Project companies can book revenues and hence profits, from their projects, only when it is substantially complete.

L&T will supply equipment such as switchgears, cabling, power transformers, sub-station automation systems and will also construct the facilities, including civil works. The order is from the Qatar General Electricity & Water Corporation, which had earlier ordered six 66KV substations from L&T.

Given the size of the order, it had no impact on L&T’s market price, which had fallen by 0.7% at the time of posting, but did somewhat better than the market which was down by 0.9%.

Comments are closed.