L&T's Project Growth Boosted by Infrastructure, Hydrogen, and Solar Sectors
Key Ideas
- L&T expects an 8% year-on-year revenue growth in Q1 FY25 due to a surge in orders from the Middle East and domestic market.
- Analysts project a 12% consolidated revenue growth led by a 14% y-o-y increase in E&C revenue, emphasizing project execution in Saudi Arabia.
- Despite labor shortages affecting project execution, L&T anticipates a steady EBITDA margin of 7.5% in the core E&C sector.
- In the previous quarter, L&T reported a 10% rise in consolidated net profit, reaching ₹4,396 crore, with a 15% growth in total revenue from operations.
Larsen & Toubro (L&T) is set to experience a surge in revenue in Q1 FY25, driven by significant order inflow from both the Middle East and the domestic market. Analysts foresee growth in projects related to infrastructure, hydrogen, solar, and heavy engineering sectors for the Mumbai-based company. Despite potential impacts on project execution due to labor shortages, L&T anticipates an 8% year-on-year revenue increase. The company recently reported a 10% rise in consolidated net profit for the quarter ended March 31, amounting to ₹4,396 crore, with a 15% growth in total revenue from operations. Looking ahead, analysts predict a 12% consolidated revenue growth, primarily attributed to a 14% year-on-year rise in E&C revenue. Emphasis is placed on monitoring project pipelines and enhancing project execution in the Middle East, particularly in Saudi Arabia. L&T aims to maintain a stable core E&C EBITDA margin of 7.5% despite the challenging labor environment.