L&T secures highest ever quarterly orders worth Rs 1.16 lakh crore in Oct-Dec

At Rs 1.16 lakh crore, Larsen & Toubro Ltd recorded its highest ever orders in a quarter (Oct-Dec) at the group level, recording a year-on-year growth of 53%.

In a conference call with journalists, R. Shankar Raman, Chief Financial Officer, L&T, outlined that the highest ever quarterly order in the conglomerate’s history was on account of a strong momentum in the infrastructure, hydrocarbon, carbon rate solutions and precision engineering and systems businesses. Overall orderbook as of December end was at Rs 5.64 lakh crore.

L&T, earlier in the financial year had guided for 10% growth in order inflow. The company received orders worth Rs 3.02 lakh crore at the group level during the year ended March 31, 2024.For the current quarter (Jan-March), Raman highlighted that the company is very well positioned to win four-five very large orders which will aid in the pursuit of the order guidance for 2024-25.

“To achieve our guidance we need possibly another Rs 70,000 or 80,000 crore of order in quarter four. Historically, quarter four has been a very rewarding quarter for us,” said Raman to journalists.

While the order inflow was boosted by contracts from government-owned NTPC for thermal power plants, Raman highlighted that it is too early to assess if government spending is now on the upswing post last year’s elections.

“They (NTPC orders) do move the needle on a quarterly context significantly. To broad base it as revival of government spend on infrastructure post election would require a few more evidencing of orders in the other sectors. We hope they will start rolling, now that some major elections are out of the way,” said Raman.

L&T’s flagship infrastructure projects segment secured order inflow of Rs 49,070 crore, during the quarter, up 14% year-on-year, of which international orders constituted 74% of the total order inflow of the segment with orders in renewable and power transmission and distribution businesses.Consolidated net profit in Oct-Dec was at Rs 3,358 crore, up 14% year-on-year, while revenue from operations was at Rs 64,667 crore, up 17% year-on-year.