Larsen & Toubro (L&T) secured a contract for the Oman-UAE railway project, boosting trade and logistics efficiency. Despite the win, shares closed 0.26% lower.
Larsen & Toubro (L&T), an Indian multinational conglomerate with a focus on engineering, construction, and technology, secured a major contract on February 10, 2025, to build railway facilities for the Oman-UAE railway project. The project, known as Hafeet Rail, is a strategic initiative aimed at improving economic integration and trade between Oman and the UAE. The contract, awarded by Oman’s government, also includes Power China, which will help build essential railway logistics facilities in Al Buraimi and Sohar, key cities in Oman.
This new development is expected to enhance the transportation and handling of bulk, containerized, and breakbulk cargo, significantly improving multimodal connectivity and logistics efficiency. By meeting global freight handling standards, the project promises to support Oman and the UAE’s ambitions to strengthen their positions as major trade and logistics hubs. Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, emphasized that the agreements mark a transformative step in the economic collaboration between the two nations, driving industrial expansion and cross-border investments.
Despite this significant win, L&T shares ended February 10, 2025, with a slight dip of 0.26%, closing at ₹3,328.60 compared to ₹3,337.40 in the previous session. The stock has seen fluctuations over the past year, with its 52-week high at ₹3,963 on December 12, 2024, and its low at ₹3,175.50 on June 6, 2024. While the company has delivered an impressive 157% return to its investors over the last five years, the stock has faced a 9.23% decline on a year-to-date (YTD) basis.
Larsen & Toubro has reported a solid 14% year-on-year (YoY) growth in its consolidated net profit, amounting to ₹3,358.84 crore for the latest financial period, up from ₹2,947.36 crore in the same period the previous year.
