This Bluechip Shares of large-cap infrastructure companies are gaining attention after they secured an order for Power Transmission and Distribution Business vertical in India and the Middle East worth upto Rs. 5,000 crores.
Share Price Movement
In Tuesday’s trading session, the share price of Larsen & Toubro touched a day’s high of Rs. 3,643.90 per share which was up by 1.13 percent. The stock reiterated from the day’s high and was trading at Rs. 3,627 per share which is 0.66 percent higher than the previous closing price of Rs. 3,603.05 per share. The stock has delivered a 3 percent return in the past year thus underperforming the Nifty Index.
What happened
The Power Transmission and Distribution (PT&D) vertical of Larsen & Toubro has won new orders in India for implementing an Advanced Distribution Management System in West Bengal. This technology makes power distribution smarter while combining the Outage Management System and Distribution Management System functionalities. The Real-time monitoring and control of medium and low voltage networks will improve network reliability by quickly isolating faults and restoring service faster.
Larsen & Toubro has also won orders in the Middle East region. In Saudi Arabia, PT&D secured an order for a key 380kV Substation to facilitate solar generation evacuation. In Kuwait, PT&D won an order for a 400kV Substation at a major city project. In Dubai, PT&D received orders to establish a set of EHV substations, including a 400/132kV Substation. Several substations are being added to the Emirate’s power transmission infrastructure to maintain its status as a preferred destination to live, work, and visit.
Order Book
As of Q2FY25, the total order book stands at Rs.5,10,400 crore. Out of this, 60 percent is from India and 34 percent from the Middle East and the remaining 6 percent is from the rest of the world. 67 percent of this includes infrastructure, 23 percent from energy, 7 percent from hi-tech Manufacturing, and 3 percent from others.
Management Guidance
The Management has given out guidance which indicates that the order inflow is expected to grow at 10 percent for the current financial year, with margins by around 8.2 percent, and revenue by 15 percent.
Financials
In its Q2FY25 financial results, L&T reported revenue of Rs.61,555 crore, a 20.63 percent increase from Rs.51,024 crore in the same quarter of the previous year. The Profit After Tax grew by 6.57 percent to Rs.4,099 crore, up from Rs.3,846 crore in the same quarter of the previous year.
Company Profile
Larsen & Toubro Limited is a major Indian multinational conglomerate engaged in the business of engineering, technology, manufacturing, and construction. With operations in over 50 countries, they offer integrated solutions across key sectors such as hydrocarbon, infrastructure, and defence. Their business model concentrates on a customer-focused approach, enabling them to deliver complex projects globally.
Written by – Santhosh S
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