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. 10,000 Crores from Middle East and Africa.
Price Action
With a market capitalization of Rs. 4,72,394 Crores, the shares of Larsen & Toubro Limited were trading at Rs. 3,435.60 per equity share, up 1.7 percent from its previous day’s close price of Rs. 3,380.90.
What Happened
Larsen & Toubro Limited’s Power Transmission & Distribution (PT&D) vertical has secured major work orders in the Middle East and Africa for a consideration ranging from Rs. 5,000-10,000 Crores, for expanding and strengthening the electricity grids at high-voltage levels.
The first work order is to build the new National System Control Centre in consortium with a leading original equipment manufacturer, for Kenya. The transmission hub will manage the power flow in the country by integrating diverse generation sources and by despatching power based on merit order. It also involves the implementation of a backup energy management system at a distant location.
In the Middle East, new orders have been secured for the turnkey construction of high-voltage transmission lines in Saudi Arabia. Additional Gas Insulated Substation orders have been received in an ongoing power system expansion project in Qatar.
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.
Larsen & Toubro Limited 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
Written by: Bharath K.S
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