L&T achieves ₹2,786 Crore profit for Q1, 15% revenue growth

25 Jul 2024 , 01:38 PM

On July 24, 2024, Larsen & Toubro (L&T) reported a consolidated profit after tax (PAT) of approximately ₹2,786 Crore for the first quarter of the financial year 2024-25. This net profit represents a 12% increase compared to ₹2,493 Crore reported in the same quarter of the previous year.

The company’s consolidated revenue for the quarter was ₹55,120 Crore, which reflects a year-on-year growth of over 15% from ₹47,882 Crore in the corresponding quarter of the previous fiscal year. 

At the time of writing on July 25, 2024 at 1:30 pm, shares of Larsen & Toubro (L&T) is currently trading at ₹3617.85 which is a 2,80% gain than the previous close. Larsen & Toubro (L&T) stock has gained a total of 41% in the last one year, and 2.62% since the beginning of the year.

International revenue during the quarter amounted to ₹26,248 Crore, constituting 48% of the total revenue. The company secured new orders worth ₹70,936 Crore at the group level, marking an 8% increase from the previous year.

The strong ordering momentum was particularly notable in the Middle East and across various sectors including Hydrocarbon (Offshore), Renewables, Transmission & Distribution, Roads, Nuclear Power, Hydel & Tunnel, Ferrous Metals, Health, and Precision Engineering.

As of June 30, 2024, L&T’s consolidated order book was valued at ₹490,881 Crore, showing a 3% increase from March 2024 and a 19% growth compared to the previous year. International orders made up 38% of this total order book.

Chairman and Managing Director SN Subrahmanyan noted that the company has achieved steady growth across all financial parameters despite global geopolitical uncertainties. L&T is strategically positioned to leverage its expertise in both traditional project management and emerging technology sectors.

The Financial Services portfolio has seen a significant transformation into Retail Finance, enhancing profitability. The company has also entered into a share purchase agreement with SiliConch Systems, a chip design firm based in Bengaluru, to expand its footprint in the semiconductor sector.

L&T received a ‘BBB+’ credit rating from global agencies S&P and Fitch, two notches above the sovereign rating, underscoring its strong credit quality. Additionally, MSCI ESG Research upgraded L&T’s ESG rating to ‘BBB’, reflecting improved performance in Environmental, Social, and Governance criteria.

The Union Budget released recently outlines a vision towards a Viksit Bharat by 2047, and L&T expects this policy direction to support continued economic growth in India, aiding the company in achieving its strategic goals and Lakshya 26 targets.

Larsen & Toubro Limited (L&T) is a leading Indian multinational conglomerate with a diverse portfolio spanning industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, military, and financial services. The company is headquartered in Mumbai, Maharashtra, India. Founded in 1938 in Bombay by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro, L&T has expanded its operations globally over the decades.

As of March 31, 2022, L&T’s corporate structure includes 93 subsidiaries, 5 associate companies, 27 joint ventures, and 35 jointly held operations. These entities are involved in various sectors such as basic and heavy engineering, construction, real estate, capital goods manufacturing, IT services, and financial services.

On October 1, 2023, S. N. Subrahmanyan took over as Chairman and Managing Director of L&T, leading the company in its strategic and operational initiatives.