Larsen & Toubro Limited — Important, 03-03-2025: Updates

Larsen & Toubro Limited has provided clarifications regarding its Postal Ballot Notice related to proposed material related party transactions with L&T-MHI Power Boilers Pvt. Ltd. and L&T-MHI Power Turbine Generators Pvt. Ltd. The company has secured a 'Limited Notice to Proceed' from NTPC Limited for thermal power plants in Madhya Pradesh and Bihar, allowing it to enter contracts for the design, engineering, manufacturing, and supply of critical equipment.

Operationally, L&T-MHI Power Boilers specializes in ultra-supercritical boilers, while L&T-MHI Power Turbine Generators focuses on turbine generator equipment. These joint ventures play a crucial role in L&T's energy solutions business. The transactions are in line with routine operations and will contribute to L&T's revenue. It is also emphasized that pricing for transactions with L&T-MHI Power Turbine Generators is competitive and disclosed properly. Potential Parent Company Guarantees worth up to ₹215 crore support LMTG, enhancing project qualifications and delivery capabilities. Investors should monitor these developments as they could be key growth drivers for the company.