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Larsen & Toubro hosted a
conference call on Jan 30, 2025. In the conference call the company was
represented by P Ramakrishnan, Head IR. Key takeaways of the conference call Consolidated order book of the
group as on December 31, 2024, was up 20%YoY to Rs 564223 crore [share of international orders at 42%]. Order inflow for Q3FY25 and
9mFY25 stood at Rs 116036 crore (up 53%YoY, of which 42% is International) and
Rs 267,018 crore (up 16%YoY, of which 54% is international). Additionally
well placed in orders in the Projects & Manufacturing segment of almost Rs
500 billion. During the quarter, orders were
received across multiple geographies and diverse sectors like Thermal Power,
Renewable, Power Transmission, Precision Engineering, Minerals & Metals,
Water, Commercial Buildings and Hydrocarbon Onshore. Of the domestic orders book
central government order is 15%, state government is 26%, PSU/SPSUs 39% and
private sector 20%. Approximately around
15% of the total order book of Rs 5.64 trillion is funded by bilateral and
multilateral funding agencies. Infra segment order book stood as
end of Dec 2024 stood at Rs 361282 crore
[International orders 37%, domestic 63%].
Infra order intake in Q3FY25 was
Rs 49070 crore (up 14%YoY) (of which international was 74%). Prospects pipeline - Aggregate
prospects as end of Dec 31, 2024 stood at Rs 5.51 trn vs. 6.27 trn same time
last year translating into a de-growth of 12%yoy basis. This decrease is
primarily due to the fall in the Hydrocarbon and CarbonLite prospects. Infra
prospects pipeline was Rs 4 trn vs. 4.01 trn last year; Energy/Hydro-Carbon is
Rs 1.44 trn vs. Rs 1.71 trn last year; Hi-Tech Mfg (Heavy Engineering &
Precision Engg) was Rs 0.65 trn vs. Rs 0.16 trn. There are initial signs of a
pick-up in government spending post the centre and various state elections,
which will give the necessary impetus to the Infrastructure capex spend in the
near-term Guidance for FY25- Expect to
surpass the earlier states 10% growth in order inflow for FY25 considering 16%
growth in OI in 9mFY25 and strong prospects pipeline. Similarly on revenue front expect to surpass
the earlier stated growth of 15% over FY25 given large order book on hand
expect execution to carry on at good clip.
On margin front the projects and mfg portfolio margin will be at around
8.2% for FY25. NWC to revenue should be around 12.7% for
FY25.
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