In Short:
Larsen & Toubro (L&T) is expected to experience an increase in revenue in Q1 FY25, thanks to strong order inflow from the Middle East and the domestic market. Project growth is being driven by infrastructure, hydrogen, solar, and heavy engineering sectors. Analysts predict an 8% year-on-year revenue growth, with a flattish EBITDA margin and potential impact on project execution due to labor shortages.
L&T Set to See Revenue Boost in Q1 FY25
Exciting news ahead for Larsen & Toubro (L&T) as the company gears up for a surge in revenue in the first quarter of fiscal year 2025. Thanks to a solid order inflow from the Middle East and the local market, analysts are optimistic about L&T’s performance in the upcoming period.
Positive Trends in Various Sectors
Analysts are attributing the projected growth to developments in key sectors such as infrastructure, hydrogen, solar, and heavy engineering. This broad-based progress is expected to drive L&T’s revenue higher, with an estimated 8% year-on-year growth.
- L&T eyes acquisitions for semiconductor business
Although the company may face challenges related to labor shortages impacting project execution, the overall outlook remains positive.
Recent Financial Performance
In the last reported quarter ending March 31, L&T saw a significant uptick in consolidated net profit, with a 10% increase amounting to ₹4,396 crore. Total revenue from operations also saw a healthy growth of 15%, reaching ₹58,335 crore.
Forward Looking Strategies
Looking ahead, experts anticipate a consolidated revenue growth of 12%, primarily driven by a 14% year-on-year increase in Engineering & Construction (E&C) revenue. The focus will be on efficiently managing projects in the Middle East, particularly in Saudi Arabia, to ensure optimal execution and results.
According to Motilal Oswal, a core E&C EBITDA margin of 7.5% is expected, maintaining stability compared to the previous year.
