Larsen & Toubro hosted a conference call on Oct 30, 2024. In the conference call the company was represented by P Ramakrishnan, Head IR.

Key takeaways of the call

Maintains guidance in respect of group order inflow, revenue, margin and netWC.  That is 10% growth in order inflow, 15% growth in revenue and maintaining the margin at same level at that of FY24 and NWC of 15%.   

Business prospects for next six months ending March 2025 is about Rs 8.08 trillion, a marginal drop of 8% compared to a year ago.  This marginal drop in order prospects is largely relating to fall in hydrocarbon and carbon lite segments.     Of the total order prospects that of infra is Rs 5.42 trillion (vs 5.06 trillion), Hydrocarbon is Rs 2.25 trn (vs. 2.91 trillion), carbon lite was Rs 0.25 trn (vs. 0.55 trillion), Heavy Engineering was Rs 0.16 trillion (vs 0.23 trillon).

Of the infra order prospects of Rs 5.42 trn about Rs 4.14 trn is domestic and balance 1.28 trillion is international. Of the infra order prospects water is 17%, power T&D is 7%, renewable is 8%, transportation is 28%, B&F is 15%, heavy civil is 18% and mineral & metals is 8%.

Second half  will be busier in terms of ordering in domestic market.  Of the total order prospects for next 6 months about 57% is domestic orders.  

The company has deleted orders worth Rs 6 billion in H1FY25 and there is no deletion of orders in Q2FY25. The share of slow moving orders in the order book is less than 0.5%.

Of the domestic order book of about Rs 3.05 trillion (or 60% of overall order book) central government is 14%, state 28%, state PSUs 36% and private is 22%.  

BTG orders -  6400MW across 3 projects the company is well placed.  The company expect to get atleast 4GW even it that is split and some package is given to L2

In minerals & Metals sector, the private sector opportunities are about RS 50000 crore and of which 50% is domestic.