L&T shares surge as Q2 profit and revenue beat estimates; order book at all-time high
International revenue makes up 52% of Q2 earnings, with strong global project execution driving growth
Larsen & Toubro (L&T) shares rose 4.8 per cent to reach an intraday high of Rs 3,572 on the BSE, following the company’s Q2 results, which beat market expectations.
Net profit climbed 5 per cent YoY to Rs 3,395 crore, slightly above the consensus estimate of Rs 3,335 crore. L&T’s consolidated revenue hit Rs 61,555 crore, up 21 per cent YoY, with accelerated progress in its Projects & Manufacturing (P&M) segments.
International revenue for Q2 reached Rs 32,057 crore, or fifty-two per cent of total revenue, underscoring the company’s strong performance in overseas projects. L&T’s order inflow for the quarter totalled Rs 80,000 crore, bringing the total order book to an all-time high of over Rs 5 lakh crore, with a near-term pipeline of Rs 8 lakh crore. However, margins softened slightly, with EBITDA margins at 10.3 per cent due to higher costs.
Brokerage firms remain optimistic: Goldman Sachs raised its target to Rs 3,960, while Jefferies, JP Morgan, Morgan Stanley, and Nomura have set targets as high as Rs 4,360, maintaining "Buy" ratings. L&T’s management reaffirmed its FY25 core EBITDA margin guidance of 8.25 per cent, a figure Zee estimates suggest could see further upside.
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