Larsen and Toubro Ltd (L&T) shares jumped over 3 percent on Friday after the company said that its construction division has won significant orders for its water and effluent treatment business.
Shares of L&T were trading at Rs 1,924 apiece, up 2.6 percent, at 12:48 pm on BSE after hitting an intra-day high of Rs 1,936.55. This when the Sensex was trading higher by 1.8 percent, or 1,030 points, at 58,265.
In the past six months, shares of L&T have jumped over 10 percent while during the same period the BSE Sensex has risen a mere 1.6 percent.
L&T on Friday announced through a press release that the water and effluent treatment business of L&T Construction has secured repeat orders from the Narmada Water Resources, Water Supply and Kalpsar Department of the Gujarat government, to execute pumping system and pipeline works from Tappar Dam to Nirona Dam (Northern Link).
Though the company did not elaborate on the value of the order, it classifies the said order as ‘significant’ that ranges between Rs 1,000 crore and Rs 2,500 crore.
This is the single largest order secured by the business in Gujarat, the company said in the release. The scope of work involves design, supply, construction and commissioning of pump houses and pipelines, with associated electrical and automation works.
The turnkey project aims to strengthen water resources in the Kutch district of Gujarat by filling existing reservoirs that will irrigate 36,392 hectares of land.
“The order reinforces the customer’s trust in L&T’s capability to undertake projects of social importance in seismically sensitive areas with the larger goal of agricultural development and water conservation,” said the release.
On Thursday, too, L&T announced that the company’s heavy engineering arm won several contracts in the second quarter (Q2) of 2022-23.
L&T said on Thursday that some of these marquee contracts were secured from prestigious clients, demonstrating the company’s hi-tech manufacturing capabilities.
