L&T shares rise after bagging large APM System order for Dubai's Al Maktoum Airport

Shares of Larsen & Toubro (L&T) gained in Thursday's trade after the company's transportation infrastructure business, in consortium with Japan's Mitsubishi Heavy Industries (MHI), secured a large order to design and build the Automated People Mover (APM) System for Phase 1 of Al Maktoum International Airport in Dubai.

L&T classifies a large order in the range of Rs 2,500 crore to Rs 5,000 crore.

"The project, developed by Dubai Aviation City Corporation and being implemented through Dubai Aviation Engineering Projects, is a key component of the airport's long-term expansion programme designed as a multi-phase development," the company said.

Once fully developed, Al Maktoum International Airport will become the world's largest airport, L&T said.

The scope of work for the MHI-L&T consortium includes the turnkey delivery of a fully integrated APM System, covering design, construction, supply, testing, commissioning and operational readiness of associated infrastructure and systems.

"Under the Design-and-Build contract, L&T will undertake the design, procurement, delivery and integration of critical APM infrastructure and systems, including guideways, DC traction substations, power distribution, signalling and telecommunications, onboard communication systems for vehicles, platform screen doors and depot equipment," L&T stated.

Ramkumar S, Executive Vice President & Head – Transportation Infrastructure, L&T, said: "With challenging execution milestones, advanced technologies and multiple system interfaces including guideway, power supply, state-of-the-art telecom, platform screen doors and depot equipment, this project exemplifies the scale and complexity of integrated APM Rail Systems that L&T is uniquely positioned to deliver. With MHI's proven APM Systems and L&T's extensive integrated systems experience supported by world-class Engineering Designs Centre, enables us to execute such projects with a strong focus on safety and quality."

L&T said the Al Maktoum International Airport APM System project further enhances its credentials in the region and positions the company to capitalise on emerging opportunities in the railway and transit sector across West Asia.

L&T share price

On the stock-specific front, L&T shares were trading 1.09 per cent higher at Rs 4,074.10 in Thursday's trade.