L&T Shares Slump 2% Despite Securing Large Order 

Larsen & Toubro Ltd (L&T) were trading in the red and 2% lower on Tuesday, 5 May, despite announcing that its hydrocarbon onshore business has received a “large” order from Bharat Coal Gasification and Chemicals Ltd. (BCGCL), a joint venture of Coal India Ltd. and Bharat Heavy Electricals Ltd. (BHEL), for a coal-to-ammonia-nitrate project in Odisha.

L&T classified orders between Rs 2,500 crore and Rs 5,000 crore as “large.” The order covers the development of the nitric acid and ammonium nitrate plant, which will be completed on a lump sum turnkey basis with a single point of responsibility.

Once operational, the facility will convert coal to ammonium nitrate with a planned daily production capacity of 2,000 tonnes, according to L&T’s exchange report.

L&T stated that the scope of work includes process licensing, basic design, detailed engineering, procurement, and construction, as well as mechanical completion, pre-commissioning, commissioning, sustained load and performance guarantee test runs, overall project management, and final handover of the plant and its facilities.

“Indigenous gasification infrastructure will play a pivotal role in India’s energy transition, and the order reinforces our ability to deliver complex, technology-intensive projects at scale,” Subramanian Sarma, Deputy MD and President – L&T, said.

L&T is also scheduled to report its fourth-quarter profits on Tuesday. At 12:20 pm, the shares of Larsen and Toubro were trading 1.18% lower at Rs 4,052.40 on NSE.

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