How Big is L&T Company?

L&T in the Global Construction Arena

Larsen & Toubro (L&T), an Indian multinational engaged in technology, engineering, construction, and financial services, has shown remarkable growth and resilience in the face of global economic volatility. With its revenue fluctuating between the fourth and seventh positions globally, L&T stands as a testament to India’s industrial proficiency.

Revenue Comparison with Global Giants

The latest financial year (FY24) saw L&T’s revenue reaching Rs 2,21,100 crore. This figure places it fifth among the top construction companies worldwide. To put this in perspective:

1. China State Construction Engineering leads the pack with a staggering revenue of Rs 12,80,310.01 crore and a market cap of Rs 2,81,948.16 crore.
2. Vinci, a French company, follows with Rs 6,21,400.63 crore in revenue and an impressive market cap of Rs 5,90,042.72 crore.
3. DHI from South Korea has a revenue of Rs 2,95,314.21 crore and a market cap of Rs 4,09,599.23 crore.
4. LEN also from South Korea, records a revenue of Rs 2,85,095.47 crore and a market cap of Rs 3,73,294.03 crore.
5. Larsen & Toubro with its Rs 2,21,100.00 crore revenue and a market cap of Rs 4,76,797.15 crore, rounds out the top five.

Comparative Analysis with Market Leaders

Comparing L&T’s financial metrics with its global counterparts offers a clear picture of its competitive standing. While L&T’s revenue is lower than that of the Chinese and French giants, its market cap is notably higher than many of its peers, indicating strong investor confidence and market potential. For instance, Vinci, with a higher revenue, has a market cap of Rs 5,90,042.72 crore, which is not significantly higher than L&T’s Rs 4,76,797.15 crore, but the revenue gap is almost 2.8x between those two companies indicating lack of construction and infra projects.

L&T’s Financial Performance

L&T’s financial year 2024 has been marked by significant milestones and robust growth metrics. The company reported a 21% year-on-year revenue growth, reaching Rs 2,21,100 crore, and a 25% increase in reported PAT (Profit After Tax) amounting to Rs 1,310 crore. This growth reflects L&T’s strong execution momentum across its diverse business segments, including infrastructure, precision engineering, and systems.

The company also recorded an order inflow exceeding Rs 3 lakh crore for FY24, a 31% year-on-year increase, and an order book of approximately Rs 4.8 lakh crore as of March 31, 2024. These figures underscore L&T’s robust project pipeline and its strategic focus on expanding its international footprint, which now constitutes 38% of its order book.

Strategic Developments and Landmark Projects

L&T has been involved in several landmark projects that highlight its capabilities and strategic importance. Notable among these are:

• Yashobhoomi (India International Convention and Expo Centre), New Delhi
• Shri Ram Janmabhoomi Mandir, Ayodhya
• Mumbai Coastal Road Project
• India’s first 3D-Printed Post Office, Bengaluru
• Statue of Oneness, Omkareshwar
• Atal Setu, Mumbai
• Critical booster segments for Chandrayaan 3

These projects not only enhance L&T’s reputation but also contribute significantly to its revenue and market standing.

Conclusion

L&T’s impressive revenue and strategic growth initiatives position it as a formidable player in the global construction industry. The company’s ability to secure significant projects and maintain a robust order book in a challenging economic environment speaks volumes about its operational efficiency and strategic vision. As L&T continues to expand its global footprint and execute landmark projects, it is poised to climb higher in the global rankings, further solidifying its reputation as a leader in the construction industry.

With a focus on innovation and strategic international growth, L&T not only stands tall among the world’s top construction companies but also represents the growing influence of Indian multinational corporations on the global stage.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.