L&T’s Order Book Soars: India’s Infra and Energy Sectors Drive Massive Growth, Middle East Projects Lead the Way

Larsen & Toubro (L&T) recently announced a significant increase in its order book, reflecting strong performance in India’s infrastructure and energy sectors. In the first quarter of FY25, L&T’s order book grew by 19% year-on-year, with 38% of the orders coming from international clients.

R. Shankar Raman, L&T’s President and Group CFO, said that 60% of their strong order pipeline is from domestic projects, with the remaining 40% from overseas. The company’s consolidated revenues for the April-June quarter rose by 15% year-on-year to ₹55,120 crore, surpassing the ₹53,600 crore predicted by analysts. L&T also reported a consolidated net profit of ₹2,786 crore, up 12% from the previous year.

Increase In Revenue

The company credited its revenue increase to efficient execution of projects and a strong manufacturing portfolio, with nearly half of its Q1 revenues, ₹26,248 crore, coming from international orders. S.N. Subrahmanyan, L&T’s Chairman and Managing Director, stated that despite global geopolitical challenges, the company achieved steady growth across all financial parameters.

Infrastructure Project

Shankar Raman mentioned that L&T secured about ₹40,000 crore in infrastructure project orders in the first quarter, similar to the previous year. While domestic orders fell by 20% year-on-year, international orders grew by 42%, maintaining the overall order flow at similar levels to last year.

Shares Down

L&T’s shares closed slightly down at ₹3,519.40 on the BSE following the announcement. During the quarter, the company received orders from various sectors, including offshore hydrocarbon, renewables, transmission and distribution, roads, nuclear power, hydel and tunnel, ferrous metals, health, and precision engineering. International orders totaled ₹32,598 crore, making up 46% of the total order inflow.

In the energy and manufacturing segments, the order book stood at around ₹8,790 crore and ₹3,680 crore, respectively, with most contributions from the domestic market. Of the current ₹4.9 trillion order book, 56% is from the infrastructure sector and 24% from the energy sector.

15GW Solar Plant Project

L&T recently won a 15GW solar plant project order in West Asia and expects to secure more significant projects globally, supported by its strong credit ratings of BBB+ from S&P and Fitch, which are higher than India’s own rating. This rating helps L&T secure approvals from various credit committees and raise capital effectively.

L&T is also focusing on expanding its green energy portfolio, competing with major conglomerates like Tata Group, RIL, Adani Group, and Vedanta. The company plans to build solar plants, offshore wind farms, and green hydrogen production facilities. L&T has partnered with a French company to manufacture electrolyzers, essential for producing green hydrogen, and is investing in a 1 MW capacity electrolyzer manufacturing facility.

Acquired a Land

Additionally, L&T has acquired land in Gujarat for ammonia production, though detailed plans and financials are still being finalized. The company has allocated a capital expenditure of ₹4,000-5,000 crore for the current fiscal year, focusing on expanding its energy, infrastructure, and manufacturing businesses.

In other developments, L&T recently signed a share purchase agreement with SiliConch Systems, a Bengaluru-based chip design company, to enhance its presence in the semiconductor sector.