L&T Secures New Order for Mumbai-Ahmedabad High-Speed Rail Project

L&T Construction’s Railways arm has secured a massive contract to build the electrification system for the Mumbai-Ahmedabad Bullet Train project. This order, awarded by a Japanese agency, spans 508 km and marks the first time India will implement Japan’s Shinkansen High-Speed Electrification technology. The order is expected to be worth about Rs 15,000 crore.

About the project

The project involves designing, constructing, and commissioning a 2 x 25 kV power supply system, including traction substations, high-speed overhead equipment, and power distribution networks. This complex system, featuring advanced elements like a Heavy Compound Catenary, will ultimately enable trains to reach speeds of 320 km/h.

Funded by the Japan International Cooperation Agency, this project is a key step towards realizing India’s high-speed rail ambitions. L&T Construction’s expertise and experience in railway infrastructure position them well to deliver this critical component of the Bullet Train project.

This mega order win not only bolsters L&T Construction’s order book but also signifies India’s commitment to modernizing its transportation network and embracing cutting-edge technology.

Recently, L&T Construction also secured a significant order to build a massive new AIIMS hospital in Haryana. The project includes a 720-bed hospital, medical college, and more, spanning 1.5 million sq. ft.

Financial Performance

Larsen & Toubro Limited reported a strong second quarter for FY24, with a net sales increase of 19.32% to Rs 51,024.04 crore, compared to Rs 42,762.61 crore in the same quarter last year. The operating profit also experienced a significant increase of 15.11%. The net profit for the quarter stood at Rs 3,855.55 crore, which was Rs 2,819.20 crore in the previous year’s same quarter.

Business Overview

Larsen & Toubro (L&T) is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. L&T addresses critical needs in key sectors – Hydrocarbon, Infrastructure, Power, Process Industries, and Defence – for customers in many countries around the world.

Stock Price Movement

Today, the stock opened at Rs 3,544.15, with a high and low of Rs 3588.00 and Rs 3538.91, respectively. The stock is currently trading at Rs 3,570.70, which increased by 0.80%. The stock has a 52-week high of Rs 3,605.55 and a 52-week low of Rs 2,073.85. The company has an ROCE of 11.6% and an ROE of 11.7%, with a market capitalization of Rs 4,92,088 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.