Shares of Larsen & Toubro Ltd (L&T) fell 1% after touching a day’s high of Rs 3,636 on 1st August, despite the company announcing that it has secured a major engineering and construction contract worth between Rs 2,500 crore and Rs 5,000 crore from Hindustan Zinc Ltd.

L&T’s Minerals and Metals business has won an order to build a new zinc purification and cellhouse facility at Hindustan Zinc’s Debari Smelter Complex in Rajasthan.

The project includes constructing a 250 ktpa (kilotonnes per annum) Leaching, Purification, and Cellhouse facility. It also involves the creation of a 125 ktpa Jarosite Circuit. The upgraded smelter will produce Special High-Grade Zinc Cathodes with 99.995% purity. The scope covers engineering, procurement, installation, commissioning, and related site services.

This deal builds on L&T’s three-decade partnership with Hindustan Zinc. During this time, it has led several expansion projects at the smelter.

The contract follows L&T’s strong Q1 results. The company reported a 29.9% YoY rise in net profit to Rs 3,617 crore. Additionally, revenue growth was recorded at 15.5% to Rs 63,678 crore, along with a 12.5% jump in EBITDA to Rs 6,316 crore.

Order inflows for the quarter totalled Rs 94,453 crore, with international orders accounting for over half. L&T’s consolidated order book reached Rs 6.13 lakh crore as of 30th June, up 6% from March-end.

At 2:42 PM, the shares of L&T were trading 0.97% lower at Rs 3,601.10 on NSE.

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