L&T Surges Over 2% On Major Greenfield Airport Project In Andhra Pradesh

Larsen & Toubro (L&T) witnessed a significant surge in its stock price, rising over 2% to reach ₹2,970 per share as of 2:10 pm, following the announcement of a substantial greenfield airport project in Andhra Pradesh. This new endeavour marks another achievement for L&T's construction arm, reinforcing its strong presence in the infrastructure development sector.

The boost in L&T's shares was attributed to the company's successful bid for a construction, engineering, and procurement contract for the Bhogapuram International Airport, a greenfield project in Andhra Pradesh. The contract was awarded by GMR Vishakapatnam International Airport Ltd and is classified as a 'large' order according to L&T's valuation criteria, with an estimated worth falling within the range of Rs 2,500 crore to Rs 5,000 crore.

The Bhogapuram International Airport project is set to cater to the growing demand for air travel in the region. Initially designed to handle 6 million passengers per year, the airport's infrastructure will later be expanded to accommodate up to 12 million passengers annually, according to L&T's announcement to the stock exchanges on Monday, November 6.

The comprehensive scope of the development works for the greenfield airport includes the construction of the terminal building, airport systems, ATC (Air Traffic Control) tower, landside facilities, utilities, airfield development, and various support facilities. L&T's expertise in delivering end-to-end greenfield airport projects was further affirmed by this significant order.

The 'greenfield' aspect of the Bhogapuram International Airport emphasizes its unique nature as a facility built entirely from scratch on undeveloped land. This approach underlines its customizability and commitment to environmental sustainability.

This latest achievement for L&T is part of its ongoing endeavours in the aviation sector. The company is already engaged in the construction of airports in prominent cities such as Delhi, Bengaluru, Hyderabad, Navi Mumbai, and Chennai. The successful bid for the Bhogapuram International Airport project not only strengthens L&T's capabilities but also demonstrates the trust and satisfaction of its customers, as evidenced by this repeat order from GMR.

With a 41.5% increase in its stock value throughout this year, L&T has been a strong performer in the stock market. The company's robust financial performance was also reflected in its September quarter results, which showed a net profit of Rs 3,222.6 crore, marking a remarkable year-on-year growth of 44.6%. The management at L&T remains optimistic about its future outlook and is confident in outperforming its revenue growth guidance, set between 12% and 15%, and its order inflow guidance, between 10% and 12%, for the current financial year.

L&T's global reach was highlighted last week when the company secured a letter of intent for an 'ultra-mega' onshore project from a client in the Middle East.