With over Rs 10K cr win, L&T races to another robust quarter for orders

Engineering conglomerate Larsen & Toubro (L&T) announced a new order win on Monday, amounting to more than Rs 10,000 crore for its hydrocarbon business. With this, the company has secured orders worth at least Rs 45,000 crore in the ongoing quarter.

The combined value of Rs 45,000 crore marks the halfway point of the total order inflow reported by the company in the previous quarter ending September (second quarter, or Q2) 2023-24 (FY24).

As of Monday, L&T has reported new order wins for FY24, just shy of the Rs 2 trillion mark by a few hundred crore.
 

In its communication to the exchanges on Monday, L&T said that it has received a letter of intent for a ‘mega’ offshore order from a prestigious client in West Asia.

The term ‘mega’ refers to an order value in the range of Rs 10,000-15,000 crore.

Since the beginning of October, L&T has reported 10 new order wins in the water business, airports segment, hydrocarbon, power transmission and distribution, and the buildings and bridges segment.

These include an ultra-mega project from the hydrocarbon business and another order worth more than Rs 7,000 crore for onshore projects, both in West Asia.

An ultra-mega order refers to an order value higher than Rs 15,000 crore.

L&T does not disclose the exact value of its order wins but shares a range of values.

To calculate the Rs 45,000 crore combined value, the lower end of the range of the reported orders was taken into account in the data calculation.

For a sequential and year-on-year comparison, L&T reported new orders worth Rs 89,153 crore in Q2FY24, a quarterly record high, according to the company presentation.

In the previous year, in the third quarter of 2022-23 (FY23), the company reported new order wins worth Rs 60,710 crore.

For FY24 so far, L&T has reported order wins worth at least Rs 1.99 trillion or more.

L&T’s total outstanding order book as of September 2023 was at Rs 4.5 trillion.

In May, L&T guided for a 10-12 per cent growth in order inflow and a 12-15 per cent growth in revenue for the full FY24.

In its after-earnings call in October, L&T did not revise this stated target. However, the order inflow guidance translates into Rs 2.58 trillion for the 12 months of FY24, a 12 per cent growth from FY23’s order inflow of Rs 2.3 trillion.

With Monday’s order win, L&T has already met 77 per cent of the stated target.