The LIC-backed civil construction company is making new strides in the Digital Energy Solutions industry

The stock is up 30 percent from its 52-week low and has returned 110 percent over the past three years for multipacks.

The company’s Digital Energy Solutions (DES) division Larsen and Toubro Power Transmission & Distribution (PT&D) has been awarded a contract to develop and implement energy management systems at regional and state load distribution centers in South India. This is the latest in a series of smart digital-enabled projects being implemented by L&T DES across the globe. DES is a specialized arm of L&T’s PT&D division, offering advanced network services, energy advisory services and system integration solutions to accelerate the digitization of the power grid in India, the Middle East and the US.

As part of the order from South India, energy management systems and associated software systems will be implemented in 12 control rooms. These systems will be deployed in primary and backup configurations for the Southern Regional Load Dispatch Center (RLDC) and State Load Dispatch Centers (SLDC) in Andhra Pradesh, Kerala, Puducherry, Tamil Nadu and Telangana. L&T DES will implement this control room upgrade using power system applications provided by a leading OEM to monitor and control power flow in the power transmission network in real-time to ensure reliable and safe operation of the network. The modernization work will use the L&T-Spark-CRIMTM (Control Room Integration Middleware) platform for substation data integration.

L&T DES is also implementing a similar power and transmission control room upgrade in the Western United States. This project involves a complex setup with over 15 EMS hosts, deploying advanced applications to monitor and control energy flow in real time. The scope includes the design and implementation of situational awareness of power and transmission grid operations to help operators and analysts improve network reliability.

L&T is already executing a number of advanced grid modernization and digitalization mandates in India, including modernization work at national and regional transmission asset management centers consisting of 13 control rooms across the country, covering 270 EHV transmission substations. On the distribution network management side, L&T DES is implementing advanced distribution management systems in Mumbai and Vadodara.

Apart from these projects, L&T DES is also implementing L&T-Spark-HECSTM (Hybrid Energy Management and Control System) to monitor and control a 185 MW Solar, 254 MWH energy storage hybrid renewable power plant that L&T is implementing in Bihar. With the rapid development of hybrid renewable power plants, the company is committed globally to providing solar energy storage power plant controller implementations for large-scale renewable energy projects. L&T-Spark-PPCTM (Solar Power Plant Controller) currently powers 6 solar power plants with multi-gigawatts of maximum production capacity, ensuring full compatibility with the regional grid in India and Middle East regions.

About the company

Larsen & Toubro (L&T) is a huge Indian conglomerate with its fingers in many cakes. Their core business is engineering, procurement and construction (EPC) solutions in various sectors such as infrastructure, energy, hydrocarbons (oil and gas) and defense. They also produce custom-designed machines for these industries and even have a real estate division. L&T is a major player in the IT services market through subsidiaries such as L&T Infotech and Mindtree and also provides financial services such as rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, rate management and power generation.

The company has a market capitalization of over Rs 5 lakh crore and remains in good shape dividend payout 34.6 percent Life Insurance Corporation of India (LIC) holds 11.63% stake in the company as of June 2024. The company has a robust order book of Rs 4.909 billion as of June 30, 2024. The share value has increased by 30% from 52 -weekly lowest and gave multi-packer over the last 3 years, a return of 110%. Investors need to keep it that way Large capitalization warehouse.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.