L&T wins Rs1,920 crore order in India, Punj Lloyd Rs3,515 crore in Malaysia

Mumbai: L&T Hydrocarbon Engineering Ltd (LTHE), a fully-owned subsidiary of India's largest engineering and construction company Larsen and Toubro Ltd (L&T), on Monday said it has secured new orders in the offshore and onshore segments worth Rs.1,920 crore from domestic oil and gas companies.

An offshore contract valued at Rs.1,340 crore from Oil and Natural Gas Corp. Ltd (ONGC), won in international competitive bidding, includes engineering, procurement, construction and installation of five wellhead platforms at the Mumbai High North field of ONGC, the company said in a statement.

It said it has also secured a Rs.580 crore onshore contract from a company engaged in hydrocarbon downstream processing. LTHE did not name the company.

The orders come at a time when capital goods and engineering companies are buoyant about growth prospects in India after months of relying on international orders to offset an economic slowdown in the country. India's sub-5% growth in the year ended March gave limited room for these companies to expand.

With a change in government and with hopes that stalled projects would soon be revived, these companies, including L&T, believe that the international and domestic mix of order books will soon change.

However, Indian companies are chasing large international orders, too.

Rival Punj Lloyd Ltd on Monday announced securing a mega order of Rs.3,515 crore for a refinery and petrochemical integrated development project from PRPC Refinery and Cracker Sdn Bhd, a unit of the Petroliam Nasional Bhd of Malaysia (Petronas).

Punj Lloyd's work includes project management, design, engineering, interface with other contractors and third parties, procurement, construction, inspection and testing, pre-commissioning and commissioning, the company said in a filing.

With this win, Punj Lloyd's order book has reached Rs.24,679 crore, the company said.

Shares of L&T rose 1.02% in morning trade to Rs.1,625.7 a piece, while the stock of Punj Llyod was up 9.88% at Rs.40.60 on BSE. India's benchmark Sensex index rose 0.73% to 27,225.32 points.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.