L&T joins elite club with ₹2 lakh crore annual revenue
Larsen & Toubro (L&T) has become the sixth private non-financial firm to report a full year revenue of at least ₹2 lakh crore. The company announced on Wednesday that its revenues for FY24 saw a substantial 21% increase, reaching ₹2.21 lakh crore. This significant growth was primarily driven by the successful execution of a large order book in the Projects & Manufacturing sectors.
L&T joins ranks with industry titans
With this financial achievement, L&T now stands alongside industry giants such as Reliance Industries, Tata Motors, Tata Steel, Tata Consultancy Services and Hindalco Industries. For comparison, Reliance Industries reported a revenue of ₹9 lakh crore in FY24 while Tata Motors and Tata Steel reported revenues of ₹4.2 lakh crore and ₹2.3 lakh crore, respectively. This places L&T firmly within the ranks of India's top-performing private firms.
L&T's international business contributes significantly to revenue
A significant portion of L&T's total revenues in FY24, 43% or ₹95,086 crore, came from its international business. This surge in overseas revenue was primarily due to an increase in execution of multiple international projects. Additionally, the company's consolidated net profit also saw a rise by 25% to ₹13,059 crore. This profit included an exceptional gain (net of tax) of ₹94 crore from the divestment of stake in L&T Infrastructure Development Projects Limited.
L&T anticipates potential slowdown amid global tensions
Despite a robust year-on-year growth of 31% with orders worth ₹3.02 lakh crore in FY24, L&T is preparing for a potential slowdown in order inflow during the current fiscal due to national election and global geopolitical tensions. "We expect revenue growth to be at around 15% for fiscal year 2025," said Shankar Raman, CFO of L&T, during a post earnings call. Raman also mentioned that orders momentum is expected to pick up in the second half of FY25.
L&T's shares outperform benchmark Nifty 50
Over the past year, L&T's shares have seen a remarkable rally of as much as 47.2%, significantly outperforming the benchmark Nifty50 which generated a return of 22.1% during the same period. This impressive performance further solidifies L&T's position as one of India's leading private firms in the non-financial sector. The company's robust financial results and strong order book have contributed to this positive market sentiment.
