L&T orders shine, but margins dull
- Within its core business, profitability of the infrastructure business has been a pain point for L&T.
Larsen and Toubro Ltd’s (L&T) September quarter (Q2FY24) was characterized by healthy revenue growth and a stellar order pipeline. But at the same time, concerns lingered about its core business margin. The engineering and capital goods company trimmed its Ebitda margin guidance to 8.5-9.0% for FY24 from the earlier projected 9%. This could partly explain why the stock saw some selling pressure on Wednesday, closing about 1% lower.