 "Larsen & Turbo, L&T")
India's national elections and global geopolitical tensions will hurt Indian engineering company Larsen and Toubro's (L&T) order inflow and revenue in fiscal year 2025, the firm said on Wednesday, after reporting fourth-quarter results that beat analysts' estimates.
"We expect revenue growth to be at around 15% for fiscal year 2025," Shankar Raman, the company's CFO said in a post earnings call.
Indian elections as well as geopolitical tensions in West Asia will affect both order inflow and execution, he said.
L&T had recorded a revenue growth of 21% during fiscal 2024.
Given the variety and scale of orders it receives, L&T's results are often seen as a bellwether for capital expenditure in the Indian economy.
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Besides India, the company operates in the Middle East, Africa and South-East Asia.
L&T reported a consolidated net profit of Rs 4,396 crore ($526.5 million) for the January-March quarter, up 10% from last year and beating analysts' estimate of Rs 4,113 crore, as per LSEG data.
Its revenue from operations rose 15% to Rs 67,079 crore in the March quarter, ahead of analysts' expectations of Rs 66,336 crore, with international revenue contributing 45% of the total.
Analysts have flagged that the robust capital expenditure environment, which fuelled L&T's profit for seven straight quarters, is likely to be subdued as government spending tapers ahead of national elections that started mid-April and will go on until early June.
L&T's consolidated order book as of March 31 rose to Rs 4.76 trillion, a 20% rise from a year earlier.
The company's infrastructure segment, which contributes to about half of its total revenue, received orders worth Rs 3,134 crore during the quarter, with international orders contributing 22%.
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