L&T’s hydrocarbon business AdVENT bags significant order from Rashtriya Chemicals and Fertilizers

Larsen & Toubro is a $27 billion Indian multinational which operates in over 50 countries worldwide. Its shares were 0.15% higher at 3,537.95 apiece at 11:50 AM on Thursday, October 17. The stock has surged over 15.40% in the past year.

L&T’s AdVENT, its hydrocarbon and energy sector arm, has bagged the order from Rashtriya Chemicals and Fertilizers Limited (RCFL), the Indian government’s undertaking for fertilisers and chemicals manufacturing with Navratna status for its notable performance.

The company classifies a 'significant order' as orders valued between ₹1,000 crore and ₹2,500 crore.

"The hydrocarbon business of Larsen & Toubro (L&T) has secured a prestigious order under its Advent business vertical from a government of India undertaking with Navratna status and a leading fertilisers and chemicals manufacturing company in India," the company said in a filing to BSE.

The project involves the License, Engineering, Procurement and Construction (L-EPC) of a fertiliser plant and associated utilities and off-site facilities for Rashtriya Chemicals and Fertilizers Ltd (RCF) at its Thal unit in Maharashtra’s Raigad district.

"We are committed to executing the L-EPC work within a strict timeline," the company's Whole-Time Director and President (Energy) Subramanian Sarma said to PTI.

This is L&T’s second order with a ‘significant’ classification in two days as it also bagged another order from the Uttar Pradesh Metro Rail Corporation to design and construct the Agra Metro Phase 1, Line-2 on Wednesday, October 16.

Reportedly, brokerage firm JPMorgan initiated coverage on L&T, giving it an ‘Overweight’ rating and setting a target price of ₹4,360 apiece earlier this week.

Moreover, L&T's president R Shankar Raman told CNBC-TV18 that he was positive of the company guidance of ₹3.33 lakh crore in orders for the year but also acknowledged the challenges faced due to the global economic environment.

“We’re aiming for a 10% growth, and so far, the trends look promising. However, project orders can fluctuate, so we’ll see how it unfolds,” he said to CNBC-TV18.