Engineering conglomerate Larsen & Toubro (L&T) expects its order book to grow by INR 1 trillion to INR 5.75 trillion in FY25, driven by a 10% increase in order intake and 15% revenue growth. However, L&T remains cautious about disruptions from ongoing general elections in the first half of the year. In FY24, L&T's order book expanded to INR 4.75 trillion with a 15% rise in annual revenues. In Q4FY24, L&T reported a 10.3% rise in net profit to INR 4,396.12 crore. Segment performances were mixed with infrastructure and energy orders growing strongly. L&T has earmarked a capex of INR 4,000 crore for FY25.
Larsen & Toubro (L&T) expects its order book to grow by INR 1 trillion to INR 5.75 trillion in FY25, according to President and CFO R Shankar Raman. L&T is bullish on opportunities in India and other markets where it operates.
However, L&T views FY25 cautiously as the ongoing general elections may disrupt business this fiscal year. The company expects order intake to increase 10% and revenue to rise 15% in the current fiscal.
In Q4FY24, L&T reported a 10.3% rise in net profit to INR 4,396.12 crore from INR 3,986.78 crore a year ago. Net profit jumped 49% quarter-on-quarter.
For FY24, L&T secured over INR 3 trillion in new orders, with the order book expanding to INR 4.75 trillion. Domestic orders grew 17% while international orders were 35% of the total. Revenue increased 15% to INR 67,078.68 crore.
Full-year net profit grew 24.7% to INR 13,059.11 crore compared to INR 10,470.72 crore in FY23. Annual revenue rose 20.6% to INR 2.21 trillion from INR 1.83 trillion last fiscal.
The infrastructure segment saw 22% higher orders at INR 142,589 crore. Energy orders more than doubled internationally. IT revenues grew 7% to INR 44,473 crore. Financial Services income increased 4% to INR 13,109 crore. The Development Projects Segment recorded customer revenues of INR 5,620 crore, driven by monetisation of commercial property and higher ridership in Hyderabad Metro.
L&T has earmarked a capex of INR 3,500 crore- INR 4,000 crore for FY25 and is on the lookout to acquire startups with a ticket size of $100-200 million to enhance its semiconductor business. L&T is planning to set up a lab with an investment of up to INR 830 crore, and is in the process of building a team.
L&T is also looking at bringing the debt of its Hyderabad Metro down by another INR 2,000 crore to improve its economic viability. The firm is expecting INR 1,000 crore more from the government and INR 1,000 crore from monetisation of land parcels. This would reduce the debt to INR 10,000 crore. A year ago, the debt from Hyderabad Metro was at INR 14,000 crore.
Overall, L&T remains optimistic about its growth prospects in FY25. The company is making strategic investments in semiconductor capabilities. If order intake and revenue targets are met alongside efforts to improve project viability, L&T seems well-positioned to achieve its bullish order book guidance for the upcoming fiscal year.
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