This Bluechip’s Shares of large-cap infrastructure companies declined after reports that the Defence Ministry found Submarines non-compliant for Rs. 70,000 crore as per sources.
Share Price Movement
In Thursday’s trading session, the share price of Larsen & Toubro touched a day’s low of Rs. 3,460.05 per share which was down by 1.61 percent. The stock reiterated from the day’s high and was trading at Rs. 3,475.50 per share which is 1.17 percent lower than the previous closing price of Rs. 3,516.70 per share. The stock has delivered a negative return of 2 percent in the past year thus underperforming the Nifty Index.
What happened
The company’s stock was in focus and declined marginally after sources mentioned Defence Ministry had found the L&T bid non-compliant for Rs. 70,000 crore for six submarines. Indian Navy planned to buy six submarines under Project 75 India for three weeks of underwater ability. The Ministry rejected the L&T proposal including a partnership with Spanish Navantia for being non-compliant with the requirements of the Indian Navy.
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 of around 8.2 percent, and revenue of 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.
Written by – Santhosh S
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