- 10 Jan 2023
- ICICIdirect Research
L&T HEAVY ENGINEERING WINS MULTIPLE SIGNIFICANT ORDERS IN Q3FY23
LT - 3567 Change: -20.20 (-0.56 %)News: L&T Heavy Engineering has won multiple significant (ranging from Rs 1000-2500 crore) orders in Q3FY23E. A refinery in Mexico placed an order for its reactors and heat exchangers while it will be supplying critical reactors and vessels for blue ammonia projects in the US and Uzbekistan. One of its customers in Europe has placed orders for process plant equipment. In India, the company secured an order from IOC’s Panipat refinery for reactors and heat exchangers. It also won an order to revamp a urea plant to expand capacity and improve efficiencies. There was also a repeat order from a fertiliser manufacturer to install steam superheat coils
Views: In H1FY23, L&T announced order inflows of ~Rs 93,719 crore. Out of that, 37.6% comes from international business with order backlog as of September end at Rs 3,72,381 crore with international orders contributing 28%. L&T's total ordering prospects for remaining H2FY23E is at Rs 6,32,000 crore, comprising Rs 5,00,000 crore of domestic and Rs 1,32,000 crore of international business. L&T has become more selective in choosing business opportunities coupled with a strong backlog giving convenience to the company to use discretion in winning relatively profitable orders
Impact: Positive