The stocks of Larsen & Toubro Limited saw a marginal decline in their prices and closed at Rs 2,377.55 as compared to the previous close of Rs 2,389.55. Keeping a trajectory of six months, the scrip has gained around 12 percent ranging from Rs 2,124.10 to the current price levels.
The company, through a regulatory filing with the Bombay Stock Exchange (BSE), informed that its ‘Power Transmission & Distribution’ business segment secured significant orders within India and abroad. As per the filing, the company defines significant orders as orders in the range of worth Rs 1000 – 2,500 crores.
From domestic sources, the company received an order for building a ‘765kV Transmission Line’ which will facilitate the evacuation of Renewable Energy (RE). Coming onto the overseas orders, the company won two orders pertaining to the upgradation of ‘Electrical Networks’ in the Middle East.
Larsen & Toubro’s financials, despite a huge and diversified portfolio of operations, show consistent up movements as far as the operating revenues and net profits are concerned.
The operating revenues increased from Rs 156,521 crores during FY21-22 to Rs 183,340 crores in FY22-23 and the net profit figures, in congruence with the movement, increased from Rs 10,291 crores to Rs 12,624 crores.
After a drop in ratios during FY21-22, the company has been successful in increasing its profitability metrics with the return on equity (ROE) moving from 10.52 percent during FY21-22 to 11.72 percent in FY22-23 and the return on capital employed (ROCE) moving from 10.91 percent to 11.99 percent.
The company’s debt-to-equity ratio, though above the desired levels, has seen some reduction from 1.50 times during FY21-22 to 1.35 times in FY22-23.
Larsen & Toubro Limited is a conglomerate that enters into various contracts for a lot of activities including hydrocarbon projects, shipbuilding, and other engineering projects. The company also supplies some components or solutions for the reproduction of a wide range of equipment.
Written by Amit Madnani
