L&T becomes the sixth private company to cross ₹2 lakh crore in revenue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Larsen & Toubro (L&T) on Wednesday, May 8, became the sixth private firm from the non-financial sector to report a full year revenue of at least ₹2 lakh crore. The company’s revenues for FY24 increased by 21% to ₹2.21 lakh crore, aided by execution of a large order book in the Projects & Manufacturing businesses.

With this milestone, the engineering giant also joined in the ultra-elite club which already include names like Reliance Industries, Tata Motors, TATA Steel, Tata Consultancy Services and Hindalco Industries.

While the largest company — Reliance Industries — clocked a revenue of Rs 9 lakh crore in FY24, the trailing 12-month revenue for Tata Motors and Tata Steel stand at ₹4.2 lakh crore, and ₹2.3 lakh crore, respectively. Bangalore-based gold retailer — Rajesh Exports is not included in the sample considering the nature of its business.

At ₹95,086 crore, revenues from international business constituted 43% to the L&T’s total revenues in FY24. The increased overseas revenue was largely driven by a ramp up in execution of multiple international projects.

The consolidated net profit of the company surged by 25% to ₹13,059 crore. However, the profit included an exceptional gain (net of tax) of ₹94 crore, attributed to the divestment of stake in L&T Infrastructure Development Projects Limited.

During the year, the company received orders worth ₹3.02 lakh crore at the group level, registering a robust year on year (Y-o-Y) growth of 31%. According to the company, orders were received from different segments like Onshore & Offshore verticals in Hydrocarbon, Metros, Urban Transit Systems, Airports, Roads & Bridges, Residential, Renewables, Transmission & Distribution and the Precision Engineering sectors.

Of the total orders, international orders stood at ₹1.63 lakh crore, which is 54% of the total order inflow.

However, the company expects a slowdown in order inflow during the current fiscal due to national election and global geopolitical tensions. The company garners a significant chunk of its revenue from government orders.

“We expect revenue growth to be at around 15% for fiscal year 2025,” Shankar Raman, CFO said post earnings call. He further added that orders momentum will resume in second half of FY25.

Shares of Larsen & Toubro have rallied as much as 47.2% over the last one year. In contrast, the benchmark Nifty50 has generated a return of 22.1% during the same period.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow