Larsen & Toubro (L&T), India's leading engineering and construction conglomerate, is expected to deliver robust financial results for the second quarter, according to recent brokerage estimates. The company, set to announce its quarterly earnings on October 29, is projected to showcase significant year-on-year growth in both revenue and profit.

Key Financial Projections

Driving Factors

The anticipated strong performance is attributed to several key factors:

1. Robust Execution: L&T's ability to efficiently execute projects has been a significant contributor to its projected growth.
2. Healthy Order Book: The company's strong order book, particularly in domestic infrastructure and overseas hydrocarbon projects, is expected to fuel revenue growth.
3. Engineering & Construction Segment: This segment is projected to be the primary growth driver, with core E&C revenues expected to increase by 19% year-on-year.

Notable Developments

During the quarter, L&T announced two ultra-mega orders in its energy and hydrocarbon divisions, further strengthening its market position.

Financial Outlook

• EBITDA Margins: Expected to remain largely stable
• Core E&C Margins: Projected to be in the range of 7.60-8.00%

Strategic Focus

L&T's strategic plan encompasses several key areas:

1. Making subsidiaries self-sustainable
2. Expanding into green energy segments, including hydrogen and battery storage
3. Exiting non-core assets

Management Guidance

Analysts expect L&T to maintain its guidance of:

• 10% order inflow growth
• 15% revenue growth

This projected performance underscores L&T's resilience and strategic positioning in the engineering and construction sector. Investors and market watchers will be keenly awaiting the official earnings announcement to see if these projections materialize.

Larsen & Toubro (L&T), India's leading engineering and construction conglomerate, has announced several significant contract wins across different business verticals while reportedly nearing finalization of a major shipbuilding agreement with Maersk.

Infrastructure and Defense Orders

L&T GeoStructure

L&T GeoStructure secured multiple orders including:

• Construction of South Breakwater Extension at Paradip Port, Odisha
• Slipway augmentation work for Hindustan Shipyard Limited in Visakhapatnam
• Substructure works for a real-estate developer in Chennai

Precision Engineering Systems

In the defense sector, L&T's Precision Engineering Systems business secured an order for part construction of two Fleet Support Ships from Hindustan Shipyard Limited, with the Indian Navy as end user. These ships will:

• Be over 220 meters in length
• Have approximately 45,000 ton displacement
• Be constructed at L&T's Kattupalli shipyard near Chennai

Hydrocarbon Sector

The Hydrocarbon vertical won onshore and offshore orders from a Middle East client for:

• Engineering, procurement and construction of an Enclosed Ground-Flare system
• Upgradation of shutdown systems in offshore platforms

Potential Maersk Agreement

L&T is reportedly on the verge of finalizing a significant agreement with Maersk, the global shipping giant. The deal, focused on shipbuilding and repair projects in India, is expected to be worth up to $400.00 million and generate substantial revenue for L&T over several years.

Key Details of the Maersk Agreement

This potential partnership with Maersk could significantly boost L&T's position in the maritime industry and attract more international shipping companies to consider Indian shipyards for their construction and maintenance needs.

Other Developments

In a separate development, L&T received a GST order from Jaipur tax authorities disallowing input tax credit and imposing a penalty of Rs. 43.15 crore, which the company plans to appeal.

According to L&T's project classification system, all significant orders mentioned fall within the Rs. 1,000-2,500 crore value range.

As these developments unfold, stakeholders will be keenly watching for official announcements and further details about the specific projects, particularly the potential Maersk deal. The successful execution of these agreements could pave the way for more such collaborations in the future, potentially benefiting both L&T and the Indian engineering and shipbuilding industries at large.