The shares of this large-cap infrastructure company surged over 3 percent after securing multiple large orders for establishing substations and transmission lines for interconnected electricity networks.
Share Price Movement
In Monday’s trading session, the share price of Larsen & Toubro (L&T) gained more than 3 percent reaching an intra-day high of Rs.3,785 per share from its previous close of Rs.3,673.3 apiece.
Multiple Orders
Larsen & Toubro’s Power Transmission & Distribution (PT&D) division has secured new contracts both domestically and internationally to build substations and transmission lines, which are essential components of the extensive electricity network. Enhancing the grid accelerates the transition to clean energy and ensures a reliable and resilient power supply.
In India, PT&D has been awarded contracts for two 765kV (Kilo Volt) double circuit transmission line packages to facilitate the transfer of power from the Jaisalmer/Barmer Renewable Energy Zone in Rajasthan to substations in Madhya Pradesh for further integration.
International orders
PT&D will enhance the 380kV network in the central region by constructing a 380kV Substation and 380kV Overhead line segments, supporting a more sustainable and efficient power supply in Saudi Arabia.
Additionally, in the United Arab Emirates, PT&D has secured contracts to build a 220kV Substation and three 132kV Substations, which will help meet the rising electricity demand in Dubai and Abu Dhabi.
L&T classifies orders ranging between Rs.2,500 crore to Rs.5,000 crore as “large” orders and all the orders mentioned above are classified as large orders.
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Revenue composition
L&T generates 49 percent of its revenue from the Infrastructure segment, 30 percent from the Services segment, 15 percent from the Energy segment, 3 percent from the Hi-Tech Manufacturing segment, and the remaining 3 percent from various other segments.
Order book
L&T announced that the company secured orders totaling Rs.70,936 crore at the group level in Q1 FY25, marking an 8 percent year-on-year increase, driven by robust demand in the Middle East. Of the total order inflow, international orders amounted to Rs.32,598 crore, representing 46 percent of the quarterly total.
The company’s total order book stands at Rs.4.90 lakh crore. Within this, domestic orders make up 62 percent, orders from the Middle East represent 35 percent, the USA and Europe together account for 0.4 percent, and the Rest of the World constitutes 3 percent.
Financial Performance
For the quarter ending June 2024, Larsen & Toubro reported a consolidated net profit of Rs.2,961.34 crore, reflecting a substantial 65 percent increase from Rs.1,792.36 crore in Q1 FY24. Net profit also grew 11 percent sequentially from Rs.2,666.07 crore in Q4 FY24.
Consolidated revenue from operations rose 12.5 percent year-on-year to Rs.30,278.75 crore in Q1 FY25, up from Rs.26,930.54 crore in Q1 FY24. However, quarterly the revenue declined by 23.5 percent from Rs.39,553.27 crore in Q4 FY24.
About the Company
Larsen & Toubro Ltd is a multinational conglomerate that is primarily engaged in providing engineering, procurement, and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology, and Financial Services in domestic and international markets.
Written by – Siddesh S Raskar
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