Larsen & Toubro Confident Of Achieving FY25 Guidance On Strong Order Visibility: CFO
As far as revenue guidance of 15% is concerned, L&T is keeping pace with the guidance with a couple of months to go, R Shankar Raman says in a post-earnings conference call.
Larsen & Toubro Ltd. achieved the largest single-quarter order inflow in the third quarter and is confident of achieving its full-year guidance for orders, revenue and core operating margins in the current financial year.
India's largest engineering and construction company sees order-inflow visibility in both domestic and international markets to help the company meet its guidance of 10% growth in order inflows, 15% revenue growth and a stable core engineering margin of 8.2%.
The company is in a happy position with a large order-book position and the fourth quarter has historically been a strong quarter for both orders and decision-making that would help them achieve the full-year guidance or even beat it, Chief Financial Officer R Shankar Raman told reporters in a post-earnings conference call on Thursday.
"We need less than Rs 65,000 crore in the fourth quarter to achieve our order guidance of Rs 3.30 lakh crore. However, it should be noted that a large part of our orders is bulky in nature. If we achieve the order in the quarter, we outperform the guidance or it moves to the next quarter," Raman said.
We are well-positioned to beat what we have guided for, but we have to be mindful that many of them are large orders.CFO R Shankar Raman
As far as revenue guidance of 15% is concerned, the company is keeping pace with the guidance with a couple of months to go, he said, adding that even core margins of 8.2% would be achieved.
In the third quarter, L&T achieved the highest-ever single-quarter order inflows of Rs 1.16 lakh crore, registering a growth of 53% over the year-ago period. Total order book position increased to Rs 5.64 lakh crore.
Of the total order book, 60% of the orders are from the domestic market and 40% from the international market. While infrastructure contracts constituted Rs 4 lakh crore, energy segment orders, largely from the hydrocarbon sector, made up Rs 1.4 lakh crore.
The company has also optimised its fund utilisation, containing working capital at 12.7% of total revenue on a 12-month trailing basis, Raman said.
