L&T Bags ₹ 3,375-Cr Metro Rail Project in Mauritius
Company says it aims to complete and deliver a priority section of 13 km in just 24 months
Mumbai: Larsen & Toubro has bagged an order worth Rs 3,375 crore to build a metro rail project for the gover nment of Mauritius, the $17-billion engineering major said on Wednesday. L&T has been upbeat about metro rail projects and is executing such ventures in Riyadh, Doha and 17 other locations in India. On Wednesday, ET exclusively reported that the company is close to winning orders for two packages worth total ₹ 1,300 crore as part of the Mumbai Metro Line 4.
“This order is perfectly in sync with our strategy to expand L&T’s railways business into markets beyond India and we are extremely happy to have found a foothold in the African continent,” Rajeev Jyoti, chief executive officer of railways business at L&T, was quoted as saying in a statement.
The Mauritius project entails designing and building of an integrated light rail-based urban transit system over a 26-km route connecting Curepipe to Immigration Square in Port Louis, Mauritius. L&T would build 19 stations which would include two elevated ones.
L&T bagged the projects through the competitive bidding route and it will be fully funded through a government of India grant and line of credit. While the project is sched- uled to be completed in 48 months, L&T said it aims to complete and deliver a priority section of 13 km in 24 months.
L&T’s new orders fell 11% year-onyear to ₹ 26,352 crore in the first quarter of 2017-18, dragged by a steep fall in orders from the West Asia and muted orders from the domestic market. While the company’s order inflow and net profit in the quarter disappointed the Street, the management of the company expressed optimism on the way ahead, given the pick-up in domestic order execution and new orders.
“The pick-up in L&T’s domestic execution, while positive, is in line with the required run rate to achieve the FY18 growth guidance. Weak order inflow has meant an increase in required order inflow growth to 18% year-on-year for the balance year, which appears s t e e p, ” IDFC Securities said in a report after the company’s earnings last week. The L&T management said it is on track to achieve a growth guidance of 12-14% for order inflows and 12% for revenue growth in 2017-18 and may review its target at the end of six months.