L&T Q4 Results: Profit Up 12%, Beats Estimates

The company has guided for 15% revenue growth for FY25 and 10% growth in order inflows—which is lower as compared with 21% and 20%, respectively, guided in FY24—as the union election is likely to impact the first two quarters of fiscal 2025.

R Shankar Raman, chief financial officer of L&T, told media in a conference call that execution of projects is likely to be impacted by elections. Also, labour mobilised at construction sites have already gone to their villages from the site locations, and are unlikely to return immediately after casting their votes, which would have an impact on projects, he said.

By the time they will return, monsoon will begin, so two quarters are lost before things would start to pick up, he said.

"As far as margins are concerned, they progress on jobs and speculations on logistics and energy costs and their competitiveness, given the energy transition that is going on. Given the revenue guidance of 15%, margins are likely to remain in the current range of 8.25-8.5% in FY25," Raman said.