L&T eyes bigger role in Middle East infrastructure, energy development

The company reported a consolidated net profit of Rs 4,396 crore for Q4FY24, up 10 percent compared to Rs 3,987 crore in the same quarter last year.

Larsen & Toubro, which has a presence across sectors including, defence, infrastructure, power, construction, technology and finance among others, plans to continue its investments into the Middle East region while adopting a more broad-based approach.

According to the management of the diversified conglomerate, the investments in Middle East will not be limited to hydrocarbons but will extend to infrastructure building while developing the region as a tourist destination.

Also read: L&T Q4 results: Siddhartha Mohanty appointed as Director; to take charge from May 28

“Between the infrastructure, they need to build and the energy that they need to generate for the infrastructure, and also the downstream investments that they do in petrochemical and related areas would see continued thrust,” said Shankar Raman, CFO, L&T, during the management call on May 8.

Going forward, he noted that they will evaluate which could qualify as “fancy investments” and which would be considered “must have investments”.

As of March 2024, the total order book of L&T stood at Rs 4.75 lakh crore, of which Middle East contribution is around 35 percent. Further, Middle East contributed around 22 percent to the firm’s fourth quarter total revenue of Rs 2.2 lakh crore.

Meanwhile, L&T's international order inflow fell in Q4FY24 to Rs 25,217 crore from Rs 36,046 crore in the corresponding period last year.

The management, however, has said that it does not expect a slowdown in international order inflows in 2024-25 despite seeing a temporary fall in the last quarter of FY24.

The company reported a consolidated net profit of Rs 4,396 crore for Q4FY24, up 10 percent compared to Rs 3,987 crore in the same quarter last year.

Revenue from operations for the quarter was pegged at Rs 67,079 crore, growing 15 percent from Rs 58,335 crore in the same quarter of the previous fiscal.

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