L&T Shares Rise 2%, Hit 52-Week High After 16% YoY Rise in Q2 PAT
Larsen & Toubro (L&T) achieved a significant milestone with a 16% year-on-year growth in net profit for Q2 FY25, reaching Rs 3,926 crore. This growth was underpinned by a 10% increase in revenues, totaling Rs 67,984 crore during the July-September quarter. Following this positive news, L&T shares surged 2% to hit a 52-week high of Rs 4,048 on the NSE on October 30.
Q2 Financial Highlights
– Net Profit: Rs 3,926 crore (up 16% YoY)
– Revenue: Rs 67,984 crore (up 10% YoY)
– EBITDA: Rs 6,806 crore (improved by 7% YoY)
– EBITDA Margin: Slight decline to 10%
L&T’s robust financial performance demonstrates its strength in securing large orders across diverse sectors, reinforcing its leadership in the engineering, procurement, and construction (EPC) domain. Chief Managing Director S N Subrahmanyan noted that the company has effectively leveraged its strategic positioning to capture significant market opportunities.
Strong Order Inflows
The company’s order inflow for the quarter rose substantially, achieving Rs 1.15 lakh crore, marking a remarkable 45% increase YoY. Key sectors contributing to this growth included:
– Public Spaces
– Data Centres
– Commercial Buildings
– Metro Infrastructure
– Hydel and Tunnel Projects
– Renewable Energy
– Hydrocarbon Assignments
Analyst Outlook
Following the impressive Q2 results, brokerage firms have expressed optimistic outlooks:
– Morgan Stanley: Maintained Overweight rating; target price raised to Rs 4,090. Highlights include:
– Core revenue growth of 10% YoY
– 54% YoY surge in order inflows, particularly in the energy sector
– Improved return on equity (ROE) at 17.2%
– Goldman Sachs: Retains Neutral rating; target price adjusted to Rs 3,740. Key observations include:
– Strong order visibility despite slower execution
– EBITDA margin rise to 8%, up 40 basis points YoY
In conclusion, L&T’s promising Q2 results and strong order inflows have not only lifted share prices to new heights but also reinforced positive projections from analysts. The company remains well-placed to capitalize on growth opportunities in the infrastructure and high-tech segments, sustaining its momentum in the competitive market.