Backed by international mandates, Larsen & Toubro (L&T) recorded a 49.4 per cent year-on-year growth in order inflows during the first nine months (April to December) of FY24.
In an investor presentation filed on stock exchanges, L&T said that total order inflows in the April-December period of FY24 (9MFY24) stood at Rs.2,307 billion as against Rs.1,544 billion in the same period of FY23.
International orders, especially those from the Middle East region, dominated inflows in the 9MFY24 period with a nearly 60 per cent share. The Middle East region alone had a share of 45 per cent in the total order inflows in 9MFY24. Domestic orders had a 40 per cent share in the given period.
When viewed from business segment perspective, the “infrastructure projects” segment had a share of 48 per cent in the total order inflows in 9MFY24, followed by “energy projects” with 26 per cent.
L&T’s overall business can be categorized into seven broad segments – infrastructure projects, energy projects, hi-tech manufacturing, information technology & technology services, financial services, developmental projects and “others”. Power T&D falls under the “infrastructure projects” line of business. Power (other than T&D) as well as green energy EPC falls under the “energy projects” segment.
Order book
As of December 31, 2023, L&T had an outstanding order book of Rs.4,698 billion – 22 per cent higher than the comparable Rs.3,843 billion as of December 31, 2022.
Domestic orders accounted for 61 per cent of the outstanding order book, as of December 31, 2023, while international orders had a 39 per cent share.
The “infrastructure projects” business had a 68 per cent share in the outstanding order book followed by “energy projects” with 24 per cent, as of December 31, 2023.
Outlook
L&T said that it had a healthy pipeline of prospective mandates worth Rs.6.3 trillion. On the “infrastructure projects” line of business, L&T said that strong ordering momentum in Middle East is driving order inflow growth. While there are healthy near-term prospects in the domestic market, there could be potential deferments due to General Elections in India.
Also read: L&T Wins Order To Build 1,800-Mw Solar Plant In UAE
Featured photograph (source: L&T) is for representation only.
