Shares of Larsen and Toubro Ltd. (L&T) traded flat after reaching a day’s high of Rs 3,831.80 on 24th September, following the company’s announcement that its power transmission and distribution vertical has secured ‘mega’ orders to build advanced grid systems in the Middle East.

The firm categorises ‘mega’ orders as those valued between Rs 10,000 crore and Rs 15,000 crore. They stated that these new orders are focused on expanding and strengthening electricity grids at high voltage levels.

L&T explained that various regions within Saudi Arabia’s national electricity network are being interconnected through high voltage direct current (HVDC) links, which facilitate power exchange and enhance system resilience. The company secured orders to establish ±500kV HVDC transmission links as part of these interconnections.

L&T has also secured orders for three additional packages, including a 380kV overhead transmission line and a 380kV gas-insulated substation, contributing to renewable energy integration and grid strengthening.

In Abu Dhabi, L&T won an order to construct two major 490kV gas-insulated substations. The project involves civil works, current-limiting reactors, autotransformers, control and protection systems, substation monitoring, fault and power quality monitoring, telecommunication systems, and integration with the load dispatch centre.

T. Madhava Das, L&T’s whole-time director and senior executive vice president (utilities), said that strengthening and modernising transmission systems is crucial for creating a secure and resilient grid capable of managing variable renewable energy in a changing market.

So far in 2024, the shares have surged up to 8.5%. The company’s market capitalisation as of now stands at Rs 536,790 crore.

At 11:30 AM, the shares of L&T were trading 0.86% higher at Rs 3,820.10 on NSE.

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