L&T Expects Slowdown in Order Inflows from International Markets, Stock Price Tumbles


by Sandip Das on 9 May 2024,  3 min read


Larsen & Toubro‘s (L&T) share price declined over 5 percent intraday on May 9, 2024, after the company declared its Q4 results. The company reported a rise of 10.3 percent in net profit at Rs 4,396 crore for Q4FY24. The multinational infrastructure conglomerate’s revenue from operations in the quarter rose 15 percent to Rs 67,078.7 crore.

The Board of Directors has recommended a final dividend of Rs 28 per equity share, for the approval of shareholders.

The company said the order inflow for the quarter ended March 31, 2024, stood at Rs 72,150 crore, registering a de-growth of 5 percent over the corresponding quarter of the previous year when order inflows stood at Rs 76,099 crore.

The consolidated order book of the group is at Rs 4,75,809 crore as of March 31, 2024, with international orders having a share of 38 percent, L&T said. The order book of Rs 4,75,809 crore represents a growth of 20 percent over Rs 3,99,526 as of March 31, 2023, and Rs 3,57,595 crore as of March 31, 2022.

For the full year FY24, the order growth was at 31 percent overshooting the order inflow growth guidance of 12-15 percent.

Also read: What is Stock Market Volatility?

“India’s growth momentum is likely to continue in the medium term backed by the sustained strength in domestic demand, easing of inflationary pressures, focused fiscal spending by the government and a strong manufacturing revival through new age greenfield investments and brownfield expansion across sectors,” the company said in a stock exchange filing.

However, despite the strong growth momentum expected domestically, L&T expects a slowdown in order inflows from international markets.

“US Presidential elections in November are expected to contribute to the economic volatility. Elsewhere, the UK and European economies are still fragile and concerns around the real estate bubble in China could further dampen economic revitalisation,” the company said.

Source: moneycontrol

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