Larsen & Toubro Ltd (L&T) reported a 15% increase in revenue for Q1 FY 2024-25, reaching INR 55,120 crore, driven by strong project execution and manufacturing. International orders significantly contributed, rising by 42% year-on-year and accounting for 48% of total revenue. Domestic orders fell by 20%, but overall order flow remained steady due to international growth. The company's order book is valued at INR 4.9 trillion, with major contributions from infrastructure and energy sectors. L&T projects its order book will grow to INR 9 trillion by the end of the fiscal year and is expanding its green energy portfolio.
Larsen & Toubro Ltd (L&T) is India's largest engineering and construction company, with a significant presence in both domestic and international markets. The company operates across various sectors, including infrastructure, energy, manufacturing, and green energy. L&T has a strong track record of project execution and has recently been focusing on expanding its green energy portfolio. The company holds a strong order book and maintains a favourable credit rating from global rating agencies, which supports its ability to secure large international projects.
In the first quarter of FY 2024-25, L&T reported a notable increase in revenues, which it attributed to effective project execution and a strong manufacturing portfolio. A significant portion of this revenue, INR 26,248 crore, or 48%, came from international orders.
S. N. Subrahmanyan, L&T's chairman and managing director, stated that the company achieved steady growth across all financial parameters despite global geopolitical challenges. Shankar Raman, the president and group CFO, highlighted that infrastructure project orders totalled about INR 40,000 crore, which was similar to the previous year. Despite a 20% year-on-year decline in domestic orders, international orders grew by 42%, maintaining the overall order flow at levels similar to the previous year.
L&T's shares closed slightly down at INR 3,519.40 on the BSE. The company received orders from a variety of sectors, including offshore hydrocarbons, renewables, transmission and distribution, roads, nuclear power, and health. International orders during the quarter amounted to INR 32,598 crore, comprising 46% of the total order inflow.
In the energy and manufacturing segments, the order book stood at around INR 8,790 crore and INR 3,680 crore, respectively, with the domestic market contributing the majority. Overall, L&T's order book was valued at INR 4.9 trillion, with 56% from the infrastructure sector and 24% from the energy sector, primarily the hydrocarbon vertical.
L&T recently secured a 15GW solar plant project in West Asia and expects to win more large projects globally this year, supported by its BBB+ credit rating from S&P and Fitch. In the June quarter, the company received orders worth INR 70,936 crore at the group level, an 8% year-on-year growth driven by strong ordering momentum in the Middle East.
The company projects its order book size to increase to INR 9 trillion by the end of the fiscal year, reflecting a rise in infrastructure and energy activities in India. L&T's consolidated order book grew 19% year-on-year, with international orders making up 38%. The company reported consolidated revenues of INR 55,120 crore for the April-June quarter, a 15% year-on-year increase that exceeded analysts' expectations. The consolidated net profit for the quarter was INR 2,786 crore, up 12% year-on-year.
L&T plans to expand its green energy portfolio, focusing on building solar plants, offshore wind projects, green hydrogen, and ammonia production businesses. This expansion is part of the company's strategy to compete with other major conglomerates, such as the Tata Group, RIL, Adani Group, and Vedanta, in leveraging India's transition to net-zero emissions.
Advertisement
Facebook
Whatsapp
