Larsen & Toubro (L&T), India's leading engineering and construction company, has secured major orders valued between ₹5,000-10,000 crore through its buildings and factories vertical. This development underscores L&T's continued dominance in securing large-scale projects and reinforces its position as a key player in the infrastructure and construction sector.

Contract Details

L&T has won a significant contract from a multinational company to develop one of the largest proposed IT parks in Bengaluru. The project features:

• 5.9 million square feet of development potential
• Six towers to be delivered in two phases
• Office space development
• USGBC platinum LEED certification features
• Civil structure work
• Facade glazing
• Electromechanical services
• Landscaping

Additionally, L&T secured an order from a developer for a mixed-use development project in Mumbai, with a 45-month completion timeline.

Recent Project Wins

These new contracts add to L&T's robust order book, demonstrating the company's ability to secure diverse, high-value projects across different sectors. The string of recent wins highlights L&T's strong market position and its focus on customer needs and quality commitment.

Company Outlook

Despite the positive news on order wins, BofA Securities recently downgraded L&T shares to 'underperform' from 'buy', citing limited upside potential. However, L&T shares traded 0.40% higher at ₹3,682.90 and have gained 7.70% over six months.

As L&T moves forward with these projects, investors and industry watchers will likely keep a close eye on the company's execution capabilities and the potential impact on its financial performance in the coming quarters.

Larsen & Toubro, a $30 billion Indian multinational, operates across multiple geographies in EPC Projects, Hi-Tech Manufacturing, and Services. The company's consistent ability to secure major contracts contributes to its sustained growth and market leadership in the infrastructure and construction sector.

Larsen & Toubro (L&T), the Indian multinational conglomerate, has made significant strides in sustainable financing by securing a $700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered Bank. This move follows L&T's recent issuance of India's first listed sustainability-linked bond worth $60 million under the Securities and Exchange Board of India's (SEBI) ESG Bond Framework in June.

Key Features of the Sustainability-Linked Trade Facility

The newly secured SLTF is tied to specific key performance indicators (KPIs) that are crucial to L&T's business operations:

• Intensity of greenhouse gas emissions
• Fresh-water withdrawal targets

These KPIs align with the Loan Market Association's Sustainability-Linked Loan Principles, ensuring adherence to market standards for sustainability-linked financing. DNV, a global independent expert in risk management and quality assurance, has provided a second-party opinion on the KPIs and targets associated with the SLTF.

Transparency and Accountability

To reinforce transparency and stakeholder confidence, L&T has committed to:

• Annual disclosure of performance against the KPIs
• Independent third-party assurance of the disclosed performance

L&T's Sustainability Commitments

This financing arrangement underscores L&T's commitment to sustainable business practices and augments its sustainable business portfolio. The company has set ambitious long-term targets:

• Carbon neutrality by 2040
• Water neutrality by 2035

An L&T spokesperson emphasized that sustainability is integral to the company's corporate ethos, guiding investments in:

• Low-carbon technologies
• Resource optimization
• Biodiversity conservation

Standard Chartered's Perspective

Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered, India, stated that the bank will support L&T on its decarbonization journey through this financing instrument. She highlighted that sustainability is a strategic focus for Standard Chartered, and the bank continues to play a role in supporting the development of a more sustainable economy in India.

Implications for L&T

The successful securing of this sustainability-linked facility demonstrates:

1. L&T's leadership in driving sustainable business practices
2. Enhanced investor confidence in L&T's ESG performance
3. Improved access to sustainable finance
4. Reinforcement of L&T's position as a leader in responsible growth and long-term value creation

This move by L&T not only showcases its commitment to environmental sustainability but also positions the company at the forefront of the growing trend of sustainable financing in India's corporate sector.