Larsen & Toubro: History, Latest Updates, Milestones, Subsidiaries and Share Price

INTRODUCTION

Larsen & Toubro Ltd. (L&T), headquartered in Mumbai, Maharashtra, is a renowned conglomerate with a legacy spanning over eight decades. Since its establishment, L&T has played a pivotal role in propelling India's infrastructure and industrial development forward. Operating across more than 50 countries, its impact reaches far beyond the borders of India, encompassing regions in the Middle East, Africa, and the Asia-Pacific.

L&T's diverse portfolio includes interests in construction, IT, manufacturing, and financial services. However, their influence goes beyond mere business pursuits. The company is deeply committed to sustainability and community welfare, actively participating in various corporate social responsibility initiatives. Their efforts have been widely recognized through numerous awards, underscoring their exceptional performance across multiple domains.

In essence, L&T stands as a symbol of progress, innovation, and social responsibility, embodying a commitment to shaping a better future through its contributions to society and industry.

L&T MOVES IN 2024

February 2024

• L&T hydrocarbon vertical i.e. L&T Energy Hydrocarbon (LTEH) has bagged both onshore order and offshore order from a Middle East worth of $23 billion.

• L&T has secured an order to build a 75MW  floating solar park project on Panchet Dam in Jharkhand .

• L&T’s construction division has won an order to construct a Cable Stayed Bridge across Brahmaputra River in Assam from Palashbari to Sualkuchi .

• L&T has bagged an onshore order from IndianOil Adani Ventures Limited.

• PWD Delhi in relation with Pragathi Maidan Tunnel  has issued a notice to L&T for design flaws , serious technical deficiencies and potential threat to passenger’s life.

• L&T Technology Services in partnership with Marelli to develop an automotive infotainment and information cluster design .

• L&T Technology Services in partnership with Blackberry to develop Software Defined Vehicles for automakers.

January 2024

• L&T has reported an increase in net profit at Rs.2947.4 crore for Q3FY2024 which is equivalent to 15.5% year on year net profit.

• The company has also reported an increase in revenue from Rs.46330 crore in Q3FY2023 to Rs.55128 crore in Q3FY2024. But its quarterly margin came down to 10.4% from 10.9%.

• L&T has secured an order to construct a new AIIMS at Rewari, Haryana.

• As per LTI Mindtree Q3FY2024 report, the revenue increased by 4.6% on a year-on-year basis and profit increased by 16.83% as year-on-year basis. The company’s Q3FY2024 profit is Rs.1168.9 crore and its revenue is Rs. 9016.6 crore.

• As per L&T Technology Services Q3FY2024 results, the company has reported an increase in 12% year on year growth in revenue of Rs.2422 crore and increase in 13% year on year growth in net profit of Rs.336 crore.

December 2023

• LTI Mindtree has collaborated with Microsoft to deliver AI powered Employee engagement application

• LTI Mindtree has opened a new delivery center in Mexico City.

• LTI Mindtree has launched Hybrid Cloud Management Platform called Canvas CloudXperienz

November 2023

• L&T has raised Rs. 1500 crore through 150000 Non-Convertible Debentures which was proposed to be listed on NSE.

• Qatar’s tax authorities have posted penalties of Rs. 238.9 crore on L&T for the period 2016 – 2018 under alleged variations in the income.

• L&T has secured an order to construct Bhogapuram International Airport in Andhra Pradesh.

• LTI Mindtree in collaboration with Quantum Xchange & Fortinet has launched and tested Quantum-Safe VPN Link .

• L&T Technology Services has collaborated with NVIDIA to develop Gen AI and advanced software for medical devices.

• Consolidated Revenues: L&T achieved a remarkable 17% year-on-year growth, with consolidated revenues reaching Rs. 183,341 crore in 2023, showcasing robust financial performance.

• Order Inflow: The company secured orders worth Rs. 230,528 crore during the year, reflecting a strong 19% increase compared to the previous year. This significant order influx highlights L&T's market strength and demand for its services.

• Profit Surge: L&T's net profit soared by 21% to Rs. 10,471 crore, emphasizing the company's efficiency in managing operations and delivering value to stakeholders.

• Segmental Growth: Key segments such as Infrastructure Projects, Energy Projects, and Hi-Tech Manufacturing witnessed substantial expansion, contributing significantly to the overall growth trajectory.

• Strategic Outlook: L&T's strategic focus on these pivotal sectors, coupled with its robust financial foundation, positions the company for continued success, indicating a positive outlook for future endeavors.

Evolution of L&T: From Past to Present:

1938: Two ambitious Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro, founded Larsen & Toubro in Mumbai, starting as a partnership firm importing machinery from Europe for sales in India.

1940: During World War II, import challenges led L&T to manufacture dairy equipment locally, marking its entry into manufacturing. The first Mumbai workshop was established in 1944, transitioning from trading to manufacturing.

1950: L&T transformed into a public limited company from a partnership firm.

1960: Multiple manufacturing facilities, including one in Powai, Mumbai, were set up across India.

1970: L&T produced critical machinery for India's nuclear power and space research. A partnership with DRDO focused on design and development initiatives.

1980: Despite being denied permission to produce defense equipment, L&T collaborated with DRDO on design and development projects.

2000s: L&T expanded globally, operating in the Middle East, Africa, and Asia-Pacific regions.

2011: L&T Hydrocarbon Engineering was founded, offering EPC services for the oil and gas sector.

2020: L&T launched the final offshore patrol vessel for the Indian Coast Guard and received two risk management awards from CNBC TV18.

2021: L&T Hydrocarbon Engineering was honored with the “EPC Company of the Year” award.

2022:  L&T obtained contracts for its hydrocarbon, transportation infrastructure, and water treatment divisions. Additionally, it acquired Chiyoda’s stake in LTC for Rs 75 crore.

2023: L&T continues its legacy of innovation and growth. Leveraging its expertise, the company focuses on sustainable practices, technological advancements, and strategic partnerships. With an eye on emerging markets and cutting-edge technologies, L&T remains at the forefront of India’s industrial landscape, driving progress and shaping the future of engineering and construction.

Future: As L&T moves forward, it remains committed to its founding principles of excellence, integrity, and customer satisfaction. Embracing challenges as opportunities, L&T pioneers advancements in infrastructure, energy, technology, and beyond. With a global perspective and a local impact, the company envisions a future where innovation meets sustainability, creating a better tomorrow for communities, industries, and the world at large.

Timeline of L&T:

Inside L&T Group: Exploring Subsidiary Ventures 

L&T Company:

Corporate actions: In the fiscal year ending March 2023, L&T distributed an impressive dividend of 1,200.00%, equal to Rs 24.0 per share. Over the past five years, the average dividend for L&T was 1,180.00%, with a per-share average of Rs 23.0. The year-end dividend yield for L&T was 1.11%. Additionally, the dividend payout ratio for the year was 26.72%, in contrast to the five-year average of 43.20%.

Main News: On October 11, 2023, Larsen & Toubro (L&T) revealed that its hydrocarbon business had won a substantial onshore project from a client in the Middle East. While the precise contract value was not disclosed, L&T designates an order as 'mega' when it surpasses Rs 7,000 crore in value.

 

LTIMINDTREE:

Corporate actions: LTI Mindtrees, a subsidiary of Larsen & Toubro, announced an interim dividend of Rs.20 per share, coinciding with its Q2 FY24 results. The dividend record date is October 27, 2023. The company reported a Q2 net profit of Rs.1161.8 crore, a 0.9% increase. LTIMindtree also allotted 2,000 equity shares and approved 23,928 stock options under its employee stock options scheme. The company's shares closed 1.1% lower at Rs.5,156.9 on BSE prior to the earnings announcement.

Main News: In Q2, LTIMindtree, a unit of L&T, declared an interim dividend of Rs.20 per share and reported a net profit of Rs.8,905.4 crore.

 

L&T FINANCE HOLDINGS:

Corporate actions: In the fiscal year ending March 2023, L&T FINANCE HOLDINGS distributed a dividend of 20.00%, translating to a payout of Rs 2.0 per share. Over the past 5 years, the company's average dividend was 8.00%, with an average per-share dividend of Rs 0.0.

The end-of-year dividend yield for L&T FINANCE HOLDINGS was 2.44%. Surprisingly, the dividend payout ratio for the year was -77.23%, and the 5-year average stood at -8.69%

Main News: L&T Financial Holdings announced a significant 32% year-on-year growth in retail disbursements for Q2FY24, reaching Rs 13,490 crore. This positive report led to an uptick in the company's stock price.

 

L&T TECHNOLOGY

Corporate actions: As of September 2023, company promoters own 73.77% of L&T TECHNOLOGY without any pledged shares. In the last 30 days, L&T TECHNOLOGY's stock price has dropped by 6.3%, but over the past year, it has increased by 18.9%. The current market capitalization of L&T TECHNOLOGY is Rs 461,657.87 million.

The company declared a dividend of Rs 17.0 per share on October 16, 2023, with a record date set for October 27, 2023.

Main News: L&T Tech shares dropped by almost 6% after earnings estimates were reduced. 

 

L&T Infrastructure Development Projects Limited

Main News:  Larsen & Toubro secures water supply projects in Rajasthan and Assam.

The project includes intake structures, 3 water treatment plants (total capacity: 175 MLD), 1800 km of pipelines, 13 clear water reservoirs (capacity: 21,600 KL), 13 pump houses, 31 overhead service reservoirs (4850 KL), and 22,000 household tap connections. It also involves electromechanical and instrumentation works, automation, SCADA implementation, and a 10-year operation and maintenance plan.

 

L&T Realty:

Main News: L&T Realty and CLINT have signed an agreement to develop nearly 6 million square feet of prime office spaces in Bengaluru, Chennai, and Mumbai, India.

 

L&T Subsidiaries NSE/BSE: Current Share Prices 

Achievements & milestones:

CONCLUSION

Larsen & Toubro Ltd. is more than just a company; it embodies dedication, foresight, and ethical business practices. With a history spanning several decades, L&T has a legacy marked by excellence and continuous growth. Despite its rich heritage, L&T remains forward-looking, constantly pushing boundaries and embracing innovation. As this conglomerate strides ahead, it serves as an inspiring example for businesses worldwide, striking the ideal balance between honoring its legacy and preparing for future challenges.

Frequently Asked Questions:

1. What is L&T's recent financial performance?

In 2023, L&T achieved significant milestones, including 17% year-on-year growth in consolidated revenues, reaching Rs.183,341 crore. The company secured orders worth Rs.230,528 crore, reflecting a strong 19% increase. L&T's net profit surged by 21% to Rs.10,471 crore, showcasing its efficiency in operations and value delivery to stakeholders.

2. Which are the major subsidiaries of L&T?

• LTIMindtree

• L&T Technology Services

• L&T Metro Rail

• L&T Realty

• L&T Defense

3. What is the current L&T share price today?

Check out the current L&T share price today and real-time updates on stock prices on Enrich Money's stock analysis page here.

4. How do the achievements, including the growth in sectors like infrastructure projects and energy projects, impact Larsen and Toubro's stock price?

Larsen and Toubro's achievements, such as substantial growth in infrastructure projects and energy projects, play a vital role in shaping investor perception. Positive developments in key sectors often lead to increased investor confidence, subsequently impacting the company's stock price positively. Additionally, awards and accolades received by L&T, such as the Golden Peacock Award for Risk Management, further enhance investor trust, contributing to favorable movements in its stock price. These achievements serve as important indicators for investors, influencing their decisions in the stock market.

5. What is Larsen and Toubro's focus in terms of its strategic outlook?

Larsen and Toubro's strategic focus is on key sectors such as Infrastructure Projects, Energy Projects, and Hi-Tech Manufacturing. This focus, coupled with their strong financial foundation, positions the company for continued success and indicates a positive outlook for future endeavors.

 

Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.