L&T's construction arm bags 'significant' order; stock down

Larsen & Toubro Ltd (L&T) on Friday said its construction arm (L&T Construction) has secured a 'significant' order from the Institute of Neurosciences Kolkata to construct a Medical College and Hospital Campus at Rajarhat, Kolkata. In terms of valuations, L&T's project classification of a significant order is between Rs 1,000 crore and Rs 2,500 crore.

"The Buildings & Factories (B&F) business vertical of Larsen & Toubro Construction (L&T) has won multiple orders. The Health Business Unit has secured an order from the Institute of Neurosciences Kolkata, a reputed healthcare provider, to construct a Medical College and Hospital Campus at Rajarhat, Kolkata on a Design & Build Mode. This involves a 605-bed hospital, a medical college with 150-students annual intake capacity, hostels for students, interns, nurses and residents. The total built up area is 1.21 mn sq ft," the company stated in an exchange filing.

The project is to be executed in two phases over a period of 60 months. B&F has also received several add-on orders from some of its existing jobs, L&T added.

Shares of L&T were last seen trading 0.38 per cent lower at Rs 3,446.45 today. At this price, the stock has slipped 2.15 per cent on a year-to-date (YTD) basis.

On BSE, around 70,000 shares were seen changing hands. The figure was lower than the two-week average volume of 2.96 lakh shares. Turnover on the counter stood at Rs 23.96 crore, commanding a market capitalisation (m-cap) of Rs 4,73,836.53 crore.

The engineering company forecast a subdued revenue growth outlook for the current fiscal year. General elections and global geopolitical tensions will hurt its order inflow and revenue in fiscal year 2025, the company stated.

L&T also forecast margins for its projects and manufacturing segment at 8.25 per cent for fiscal 2025.