Larsen & Toubro share price jumps over 6.5% on strong Q2 performance

Stock market today: Shares of Larsen & Toubro surged 6.51% to ₹3,630 per share in early morning trade on Thursday, October 31, following the company’s strong financial results for the quarter ended September 30, 2024.

The company reported consolidated revenue of ₹61,555 crore for the quarter, reflecting a year-on-year (YoY) growth of 21%, driven by accelerated progress in its Projects & Manufacturing (P&M) portfolio. International revenue during the quarter stood at ₹32,057 crore, making up 52% of total revenues, which highlights a strong international P&M order book.

For the half-year ended September 2024, the company recorded consolidated revenue of ₹116,674 crore, an 18% YoY increase, with international revenues of ₹58,305 crore, comprising 50% of total revenues.

The consolidated profit after tax (PAT) came in at ₹3,395 crore for the quarter, marking a 5% growth compared to the same quarter last year. For the half-year, the consolidated PAT reached ₹6,181 crore, up 8% YoY, as per the company Q2FY25 earnings filing. 

The company booked ₹80,045 crore worth of orders during the reporting quarter, taking its order book past the ₹5-trillion mark. Although this represents a 10% decrease from last year due to a high base effect, the infrastructure projects division saw a significant YoY increase of 77% with fresh orders totalling ₹49,522 crore.

The company is looking to expand its business in Central Asia to diversify its international business beyond the Middle East. L&T had earlier taken a similar call to increase its presence in Africa to de-risk its over-dependence on the Middle East.

In the energy projects division, new orders reached ₹7,759 crore, down from ₹40,141 crore the previous year, with the current order book at ₹1.2 trillion, 77% of which is from international contracts.

The Hi-Tech Manufacturing segment secured orders worth ₹3,920 crore, reflecting a robust growth of 64% year-on-year. Overall, L&T continues to be a major player in EPC projects, hi-tech manufacturing, and services, operating in over 50 countries worldwide.

Larsen & Toubro is a USD 27 billion Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. It operates in over 50 countries worldwide.

Stock price trend

Since May 2023, the company's shares have experienced a consistent upward trend, increasing by 64% from ₹2,205 per share to the current trading value of ₹3,609. 

Looking further back, shares have surged significantly from their March 2020 low of ₹661, yielding an impressive return of 447%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.