Strong order inflow, execution likely to be positives for L&T stock

The company is well-placed in 4-5 large domestic orders and has visibility of Rs 50,000 crore in inflows for Q4FY25

Larsen and Toubro (L&T) has beaten consensus on engineering and construction or E&C order inflow (up 64 per cent Y-o-Y) and execution (up 20 per cent Y-o-Y) in Q3FY25. Core E&C margin was flat Y-o-Y at 7.6 per cent. L&T has raised its guidance for order inflow and revenue growth. Strong inflows of Rs 98,700 crore and an order prospect pipeline at Rs 5.5 trillion have enhanced revenue visibility. However, there’s likely to be margin compression.

 

L&T reported consolidated revenue of Rs 64,700 crore, up 17 per cent Y-o-Y. Operating profit was at Rs 6,300 crore, up 9 per cent