L&T bags Rs 2044cr orders; NHPC, GMR Infra among clients

The construction arm of engineering and construction major Larsen and Toubro (L&T) has bagged orders worth over Rs 2044 crore since July 1. SN Subrahmanyan, Whole-Time Director & Senior Executive Vice President at L&T (Construction) said the company has been awarded a hydel project worth Rs 781 crore from NHPC. Moreover, L&T has secured road sector orders valued at Rs 645 crore from GMR Infra.

Apart from these, L&T Construction has acquired orders from Abu Dhabi Water and Electricity Authority and for a residential complex in Kolkata, informed Subrahmanyan.

Here is the edited transcript of the interview on CNBC-TV18.

Q: You won Rs 2,000 crore in terms of orders, have you compensated in any way on margins because the voice that we hear from the industry is that order inflows have been weak but L&T's order bagging has been pretty decent of late is there any kind of a compromise on margins that we are seeing at L&T?

A: I don't think we would at any point compromise on margins to take these orders. The benefit of being L&T is that we have over 75 years of experience and we have built a reputation for being professional and delivering quality projects on time. Most clients look forward to being associated with a good EPC player to deliver the projects and to some extent the benefit of that is coming to us. That is how these orders are being booked. There is no compromise on margins out here.

Q: Can you tell us what was the nature of the orders you got which sectors, which kind of projects?

A: These are interesting orders spread across three sectors. On the infrastructure side, we have won a major hydel project from NTPC. This is a 3x57 megawatt hydel project on Lata Tapovan in Uttarakhand. NTPC is a long term client of L&T and we have got this order against competition and it is a good order.

The second is on the building and factories side. This is a residential complex in Kolkata. According to practice, we don't name the client but it is a good order in Kolkata, some good residential towers are coming up there.

Third is a power transmission and distribution job from Abu Dhabi Water and Electricity Authority, which is again a long standing client. This is a 220/33 kV grid station and assembling works. This order was pending for some time and we have got it right now.