Shares of this large-cap infrastructure company jumped 2 percent following the announcement that it had secured a Rs.5,000 crore order from the Ministry of Defence for the supply of K9 Vajra-T artillery platforms.
Share Price Movement
In Monday’s trading session, the share price of Larsen & Toubro (L&T) reached an intra-day high of Rs.3,700.00 per share, rising nearly 2 percent from its previous close of Rs.3,629.85 apiece. The share has declined since then and is currently trading at Rs.3,657.35 each.
What happened
Larsen & Toubro (L&T) has secured a significant contract from the Ministry of Defence for the supply of K9 Vajra-T Artillery Platforms to the Indian Army.
The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is a modified version of the South Korean K9 Thunder, co-developed by L&T and Hanwha Aerospace to meet the Indian Army’s operational needs across diverse terrains.
L&T had previously won a contract in 2017 for the first batch of 100 K9 Vajra-T platforms, delivering them ahead of schedule and demonstrating their capability to design, develop, and manufacture advanced defence systems. The platforms have been performing exceptionally well since their induction.
Management Commentary
“The Armoured Systems Complex at Hazira in Gujarat, a state-of-the-art manufacturing facility, was inaugurated by Honourable Prime Minister Shri Narendra Modi in January 2019. Since then, it has played a pivotal role in developing and building armored and artillery platforms within an integrated industrial ecosystem that includes several MSME partners,” said Mr. Arun Ramchandani, Senior VP & Head – of L&T Precision Engineering & Systems.
Order Book
As of Q2 FY25, Larsen & Toubro (L&T) has reported a robust order book of Rs. 5,10,400 crore, reflecting strong business momentum. The company has also achieved an impressive order inflow of Rs. 80,000 crore, showcasing its continued growth and strong performance across various sectors.
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New Developments
L&T Semiconductor Technology Limited has acquired a 100 percent stake in Silicon Systems, boosting its chip development capabilities for CCTV systems. The company is also pursuing EPC opportunities in the Oil to Chemicals sector in the Middle East, anticipating investments of $50 billion to $60 billion from clients.
Management Guidance
Management guidance indicates that the group-level EBITDA margin will be maintained at 10.2 percent. The margin forecast for the P&M (Plant and Machinery) segment is set at 8.2 percent to 8.25 percent for FY ’25, with expectations for slight improvement based on project execution and job mix.
Financials
In its Q1 FY25 financial results, Larsen & Toubro Ltd reported revenue of Rs.61,555 crore, reflecting a 21 percent increase from Rs.51,024 crore in the same quarter of the previous year. The Profit After Tax (PAT) grew by 6.5 percent to Rs.4,099 crore, up from Rs.3,846 crore in the corresponding quarter of the previous year.
Company Profile
Larsen & Toubro Ltd is a global conglomerate primarily focused on delivering engineering, procurement, and construction (EPC) solutions.
The company operates in several critical sectors, including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services, serving both domestic and international markets.
Written by – Siddesh S Raskar
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