Bluechip stock which is one of the leading players in domestic and overseas Markets, for providing EPC Solutions across various sectors in focus upon receiving a new work order worth upto Rs. 2,500 Crores for the construction of Agra Metro Phase 1.
Price Action
With a market capitalization of Rs. 4,87,023 Crores, the shares of Larsen & Toubro Limited were trading at Rs. 3,542, per equity share, down 0.30 percent from its previous day’s close price of Rs. 3,552.50.
What Happened
Larsen & Toubro Limited’s Heavy Civil Infrastructure vertical has received a new significant work order from the Uttar Pradesh Metro Rail Corporation Ltd (UPMRCL) for the design and construction of Agra Metro Phase 1, Line-2, for a consideration of Rs. 1000 – 2,500 Crores.
This work involves the design and construction of a vital 15.09 km elevated viaduct, 14 stations and a 2.61 km depot connecting the metro line from Sadar Bazar to PAC Depot, along with Architectural finishes for the stations, as well as electrical & mechanical works, running from Agra Cantonment to Kalindi Vihar. The work is to be completed within 30 months.
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About the Company
Larsen & Toubro Limited is a multinational conglomerate operating in over 50 countries, it is primarily engaged in providing engineering, procurement, and construction (EPC) solutions across major sectors such as Hydrocarbon, Power, Infrastructure, Information Technology, Defence, and Financial Services in domestic and international markets.
It has a strong order book worth Rs. 4,909 Billion, of which International orders are 37 percent (Rs. 1857 Billion) and Domestic orders are 74.58 percent (Rs. 3,052 Billion).
The segmental order breakup is as follows Infrastructure projects 66 percent, Energy 24 percent, Hi-Tech manufacturing 7 percent, and others 3 percent. As per the geography, 62 percent are domestic projects, 35 percent in the Middle East, USA & Europe 0.4 percent, and 3 percent in the rest of the world.
As for the revenue breakdown, It generates 51 percent of its revenue from the Infrastructure segment, 29 percent from services, 13 percent from energy, 4 percent from Hi-Tech manufacturing, and 3 percent from other segments.
Financials & Ratios
Its Revenue from operations grew by 15 percent YoY from Rs. 47,882 Crores in Q1FY24 to Rs. 55,120 Crores in Q1FY25, accompanied by profits of Rs. 3,096 Crores to Rs. 3,445 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 14.7 percent and a return on capital employed (ROCE) of 13.4 percent. It has maintained a debt-to-equity ratio of 1.35.
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Written by: Bharath K.S
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