Larsen & Toubro construction unit wins "Mega" order from ArcelorMittal JV; shares top Nifty gainer

The order will include installation of two blast furnaces of 3.5 MTPA capacity each on an EPC basis at their Hazira plant in Gujarat. The scope includes supplies, construction and installation of both units concurrently in a phased maner.

L&T Construction's Minerals & Metals (M&M) business will also install a steel melt shop of 6 MTPA capacity with detailed design and engineering for the entire plant, supply of identified items and complete construction.

The third part of the order includes building a 6 MTPA Ore benefication plant in Odisha on an Engineering, Procurement, and Construction (EPC) basis.

The Minerals & Metals business falls under L&T's infrastructure projects division, revenue for which grew 39 percent in the September quarter. However, the segment's margin was hurt due to cost pressures and closeout challenges.

40 percent of L&T's overall revenue during the September quarter came from the Infrastructure Projects segment.

This is Larsen & Toubro's fourth order win since November 24. Since then until December 5, the company won a "significant" (between Rs 1,000 crore - Rs 2,500 crore) for its heavy civil infrastructure business, another "significant" order for its hydrocarbon business, and a "large" (between Rs 2,500 crore - Rs 5,000 crore) order for the bullet train project.

Shares of Larsen & Toubro are trading 2 percent higher at Rs 2,135.70 and are the top gainers on the Nifty 50 index.