L&T Tech has won a USD 100 million plus plant engineering order from a global oil and gas major.
Speaking to CNBC-TV18 about the deal, Keshab Panda, MD & CEO of the company said that the opportunity from this deal is 50-100 percent more than the stated USD 100 million.
“This is a 5-year deal. I would think (from) these 2 plants itself the opportunity could be maybe 50 times more or 100 percent – it could double. So, USD 100 million estimate, it is initial estimation what we did. In due course of time, I would think it is going to be much more than what we have given,” he said.
Panda said that they are expecting the revenues to kick in from FY22 onwards. “Any deal of this size, it takes knowledge transfer. Now the global player who has been working with them for some time – now knowledge transfer phase has just started. It is going to take 2-3 months. I would think the actual revenue contribution will come FY22 onwards. Maybe a small in Q4, but major revenue will come in FY22,” he said.
On the overall deal pipeline, Panda said that the pipeline has increased multifold from pre-COVID levels. He also said that the company is looking to achieve growth levels of FY18-19.
On the aerospace segment, he said that the recovery in aerospace will take time and they are shifting focus to defence.