L&T share price slumps 3 per cent despite securing large contracts in power transmission segment
The shares of L&T ended down by 3.61 per cent on Monday as the broad market index corrected by 1,145 points. This came despite the company's announcement that it has won a slew of orders with a total consideration ranging between Rs 2,500 and Rs 5,000 crore.
The power transmission & distribution business of the company secured two EPC orders to establish more than 400 MW solar photovoltaic projects in the state of Gujarat. The scope of these packages involves the design, engineering, supply, construction, testing, commissioning as well as for operation & maintenance of grid-connected solar PV plants of about 200 MW each.
Orders have been also received in West Bengal to supply and install high voltage distribution systems in certain districts on a turnkey mode. Another order to construct 220 kV and 132 kV transmission lines have been won from the state transmission utility. The business also won a 400 kV substation order in Tamil Nadu, which involves establishing a complete substation including associated transformers, reactors, switchgear, control & protection, substation automation systems, etc.
Finally, in Qatar, the business has won an order to install a line connected current limiting reactors for the first time in the country's network. It will help in improving grid stability and enable the use of existing switchgear without major replacements.
On Monday, the stock of L&T Limited closed at Rs 1,452.25 per share, down by 3.68 per cent or 55.55 per share, against a 2.25 per cent decline in the benchmark index. The 52-week high is recorded at Rs 1,593 while its 52-week low is Rs 661.05 on BSE.