L&T boosts up after got significant contracts from NCRTC

MUMBAI (Metro Rail News): Larsen & Toubro (L&T) rise 4.39% to Rs 903.70 after L&T Construction got ‘significant’ contracts for the huge civil infrastructure business. The huge civil infrastructure business of L&T development has secured multiple contracts to make Regional Rapid Transit System Infrastructure from National Capital Region Transport Corporation (NCRTC) in UP.

The project scope is to perform a new dedicated high-speed, high capacity rail system in the Delhi-Meerut Corridor. RRTS is distinct from metro transit systems as it caters to travellers travelling relatively long distances with very few stops and at a higher speed.

The design speed for the project is 180 KMPH with an average operational speed of hundred KMPH. The multiple contracts for RRTS have been secured for packages beginning from Duhai-Modi Nagar and from Modi Nagar-Shatabdi Nagar for an entire distance of around 32 Km viaduct with seven elevated stations.

These contracts have been bagged against stiff competition and are breakthrough projects with this client. According to L&T’s classification, the valuation of the ‘significant’ order stands among Rs 1,000 crore & 2,500 crores. The disclosure was given during market hrs on 15 April 2020.

L&T shares jumped 16.64% in 6 consecutive trading assemblies to the current trading cost of Rs 903.70 from the recent closing low of Rs 774.75 on 1st April 2020. On a consolidated basis, the company’s profit rose 15.21%-Rs 2,352.12 cr on a 5.87% rise in sales to Rs 36,242.68 cr in Q3 Dec 2019 over Q3 Dec 2018.