Tag Construction Industry

Larsen & Toubro Ltd
Larsen & Toubro’s Growth: Investing in Defense and Advanced Technology for a Strong Future

Business and Industry Overview: 

Larsen & Toubro Limited, abbreviated as L&T, is an Indian multinational conglomerate with interests in industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, defense, and financial services. It is headquartered in Mumbai, Maharashtra. L&T was founded in 1938 in Bombay by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro. As of March 31, 2022, the L&T Group comprises 93 subsidiaries, 5 associate companies, 27 joint ventures, and 35 jointly held operations, operating across basic and heavy engineering, construction, real estate, manufacturing of capital goods, information technology, and financial services. It offers extensive IT services like application development, maintenance, and outsourcing; enterprise solutions; infrastructure management services; testing, digital solutions; and platform-based solutions to clients in diverse industries. It was a company that helped businesses with computers and technology. It started in 1996 and was part of a big Indian company called Larsen & Toubro (L&T). LTI helped banks, hospitals, factories, and insurance companies. It helped them store data safely. It used smart computers (AI) to solve problems. It kept information safe from hackers. It used machines to make work faster. It also helped businesses with cloud storage, websites, and mobile apps. LTI had offices in India, the US, Canada, Europe, and the Middle East. It worked with big companies in 30+ countries. Many Fortune 500 companies trusted LTI. It helped businesses move their work online. It kept their data safe. It helped them build better apps and websites. It made good money by helping businesses with technology. It grew fast because more businesses needed digital solutions. 

Latest Stock News: 

Larsen & Toubro (L&T) is making many new moves to grow its business. On April 4, 2025, L&T started a new company. This company is a fully owned step-down subsidiary. The company did not share full details, but this shows L&T wants to grow in new areas. On April 2, L&T also changed some top leaders in the company. This helps in bringing new ideas and better plans. On April 1, L&T got big new projects in its Power Transmission & Distribution business. This part of L&T builds electric lines and substations. These projects are from India and also from other countries. On March 26, L&T got its biggest project ever in its Offshore Hydrocarbon business. This part of the company works on oil and gas projects at sea. This shows L&T is trusted for big and complex work. L&T is also working on new technology. On March 25, its digital arm, Cloudfiniti, made deals with AI (artificial intelligence) startups. This means L&T wants to use smart technology in its work and offer better digital services. Even with all this good news, the L&T stock price went down a little on April 9, 2025. It closed at ₹3,126.05, which is 1.11% less than the day before. But the company is still strong. It has many projects and is working in both old and new areas. This can help the company grow more in the future. As of April 11, 2025, the Indian stock market went up because people felt more positive. This may also help L&T’s stock go up. The company is doing well with big orders and new plans in areas like power, oil, defense, and smart technology. L&T is also trusted for its strong work and experience. These things can help L&T grow more in the coming time. 

Potentials: 

Larsen & Toubro (L&T) has many big plans for the future. It will invest $12 billion in 5 years. Out of this, $4 billion will be for green hydrogen and green ammonia. It will build plants to make 2–3 million tonnes of these. It is buying 500–1,000 acres of land near the sea. It will also make electrolyzers. The first one will be used at Indian Oil’s Panipat plant. Later, L&T may work on fuel cells, big batteries, and hydrogen stations. In space, L&T is making India’s first private PSLV rocket with HAL. The rocket will launch in mid-2025. L&T also works with ISRO and helped in Chandrayaan-3. India’s space sector will grow to $44 billion, and L&T wants to grow in it. In defense, L&T wants to make more military items. It wants defense to be 10% of its business in 5 years. In real estate, it is building 28 million sq. ft. of new buildings. It will spend ₹7,000 crore to build an IT park in Vadodara, which will give 10,000 jobs in 5 years. L&T also started a chip company called LTSCT. It will build a $10 billion chip plant by 2027. It will make 15 types of chips. The Indian government will pay 90% of the plant cost. L&T wants to grow in clean energy, defense, space, chips, and buildings. 

Analyst Insights: 

  • Market capitalisation: ₹ 4,28,537 Cr. 
  • Current Price: ₹ 3,116 
  • 52-Week High/Low: ₹ 3,964 / 2,965 
  • Stock P/E: 31.0 
  • Dividend Yield: 0.89%
  • Return on Capital Employed (ROCE): 13.4% 
  • Return on Equity: 14.7% 

Larsen & Toubro Ltd (L&T) is a strong and trusted company. It is growing well. Its revenue increased from ₹1.56 lakh crore in FY22 to ₹1.83 lakh crore in FY23, and then to ₹2.48 lakh crore in the last twelve months (TTM). This shows that the company is doing better every year. Its net profit also went up. It was ₹10,419 crore in FY22, ₹12,020 crore in FY23, and ₹16,531 crore in FY24 (TTM). This means the company is making more money. L&T has a return on equity (ROE) of 14.7%. This means it is using investors’ money in a good way. It also has a strong operating cash flow of ₹18,266 crore. This shows that the company has good cash in hand. L&T’s working capital days dropped from 55.8 in FY22 to 30.6 in FY24. This means it is managing its money, payments, and stock very well. The stock has a high price-to-earnings (PE) ratio of 31 and a price-to-book (P/B) ratio of 4.82. This is high, but fair because L&T is a leader in construction, defense, green energy, and other sectors. It also has many big orders in hand and is growing in India and other countries. This makes L&T a good company for long-term investment. 

APL Apollo Tubes Ltd: Record-High Q3 FY24 Earnings
APL Apollo Tubes Ltd: Record-High Q3 FY24 Earnings and Revenue Growth

APL Apollo Tubes Ltd: Overview 

APL Apollo Tubes Limited is India’s leading manufacturer of structural steel tubes and pipes, offering a wide range of innovative and high-quality products such as hollow sections, pre-galvanized tubes, galvanized pipes, and coated tubes. The company operates through an extensive distribution network, supported by state-of-the-art manufacturing facilities across the country. With a focus on providing cost-effective and sustainable solutions, APL Apollo serves diverse sectors, including construction, infrastructure, automotive, and industrial applications. The company has positioned itself as a market leader by prioritizing technological advancements, operational efficiency, and customer-centricity, enabling it to set benchmarks in the industry. The structural steel tube and pipe industry in India is poised for robust growth, driven by increased investments in infrastructure development, urbanization, and government initiatives such as “Make in India” and “Housing for All.” Rising demand from sectors like construction, real estate, and renewable energy further supports the positive outlook. The shift toward lightweight and durable materials is boosting the adoption of structural steel tubes over traditional construction materials. APL Apollo, with its innovative product portfolio and focus on capacity expansion, is well-positioned to capitalize on these trends. Moreover, the industry’s emphasis on sustainability and recyclable materials aligns with APL Apollo’s vision, ensuring long-term growth opportunities in both domestic and international markets. 

Latest Stock News 

In this quarter of the prior fiscal year, APL Apollo Tubes reported a net profit of ₹166 crore, as disclosed in its regulatory filing. The company’s revenue from operations surged by 30%, reaching ₹5,432 crore, compared to ₹4,177 crore during the same period the previous year. The EBITDA margin for the reporting period stood at 6.4%, slightly lower than the 6.7% recorded in the corresponding period a year earlier. 

 EBITDA was supported by a sales volume of 828,000 tonnes in Q3FY25. This reflects a year-on-year growth of 37% and a quarter-on-quarter increase of 9%. The value-added product mix improved to 56% during this quarter, compared to 55% in Q2FY25. EBITDA per tonne was reported at ₹4,173, a 10% year-on-year decline but a substantial 129% growth quarter-on-quarter. Additionally, cash profit for the quarter was ₹2.7 billion, marking a 26% year-on-year increase and a 166% rise compared to the previous quarter. 

Interest expenses for the quarter were ₹368 million, showing a 29% year-on-year rise and a 1% increase quarter-on-quarter. The company’s net working capital days for the nine months ending FY25 increased to 2 days from 1 day in FY24. For the same period, the return on capital employed (ROCE) stood at 20.7%, and return on equity (ROE) was 16.4%, compared to 29.5% and 22.2%, respectively, in the prior fiscal year. 

Sanjay Gupta, Chairman of APL Apollo, remarked, “The Company has delivered its best-ever quarter, achieving record-high sales volume, EBITDA, and PAT. This impressive performance was achieved despite challenges such as a weak macroeconomic environment, subdued retail demand, and a slowdown in government infrastructure spending. For the first nine months of FY25, our volumes grew 19% year-on-year, significantly outpacing the overall industry growth rate.” 

Q3 FY24 Earnings 

  • Revenue of ₹5433 crore in Q3 FY24 up by 30% YoY from ₹4178 crore in Q3 FY24.  
  • EBITDA of ₹346 crore in this quarter at a margin of 6% compared to 7% in Q3 FY24. 
  • Profit of ₹217 crore in this quarter compared to a ₹166 crore profit in Q3 FY24. 
Welspun Enterprises Q2 Results
Welspun Enterprises Q2FY25: Net Profit Declines 11% to ₹61.56 Crore

Company Overview

Welspun Enterprises Ltd, originally known as MSK Projects (India) Ltd, is an Indian company specializing in civil construction contracts and infrastructure projects. Founded on December 20, 1994, the company initially operated as a partnership under the name M.S. Khurana since 1976, before being rebranded as MSK Projects (India) Ltd in 1995. The company later went public in 2004 with an IPO, listing its shares on the BSE, NSE, and VSE. In 2010, it was renamed Welspun Projects Ltd and eventually became Welspun Enterprises Ltd.
Welspun Enterprises engages in a broad range of civil construction projects, such as residential townships, multi-story buildings, industrial plants, and infrastructure development. The company has executed large-scale industrial projects for sectors like petrochemicals, fertilizers, pharmaceuticals, and mining, primarily through Build-Operate-Transfer (BOT) models. It has also expanded into water distribution and surface transport projects, with a significant water supply project underway in Dewas, Madhya Pradesh.
Welspun Enterprises has formed strategic subsidiaries, including MSK Projects (Himatnagar Bypass) Pvt Ltd, Super Infrastructure & Toll Bridge Pvt Ltd, and MSK Projects (Kim Mandvi Corridor) Pvt Ltd, for infrastructure and toll projects. The company has secured notable contracts with Bharat Oman Refineries Ltd and Indian Oil Corporation for extensive civil and structural work across various pipeline and refinery projects.
In 2010, the company also diversified into the energy sector, marking a significant expansion into renewable energy by securing large-scale solar projects and establishing manufacturing facilities, including a 350,000 MTPA LSAW plant in Anjar, India, and an ERW plant in the United States. Welspun Enterprises is widely recognized for its work on the Delhi-Meerut Expressway project, underscoring its leadership in major infrastructure initiatives across India.

Industry Outlook

The Indian infrastructure sector is on a solid growth trajectory for FY25 and beyond, fueled by extensive government initiatives, increased private sector investments, and the demands of urbanization. Programs like PM Gati Shakti are catalyzing sector growth with ambitious projects, including the construction of 2 lakh km of national highways by 2025, along with expressways and urban infrastructure enhancements. The sector is anticipated to grow at a CAGR of 8-10% over the next five years, with highways projected to expand at over 10% annually. This growth extends to airports, ports, and railways, with high-impact projects such as the Delhi-Mumbai expressway and 12 new greenfield airports underway, boosting logistics efficiency and economic progress​.
In line with this growth, Welspun Enterprises Ltd. (WEL) is advancing its “Growth & Green” strategy through the DGT Project, which focuses on the collection, treatment, and repurposing of wastewater from Dharavi for reuse—an initiative underscoring sustainability and water reuse. WEL’s board recently approved an additional 9.99% stake in Welspun Michigan (WMEL), bringing ownership to over 60%. This acquisition supports a collaboration with Smart-Ops Water UK to introduce SABRE technology—a cutting-edge wastewater treatment process aimed at addressing untreated sewage in India.
With a consolidated order book of ₹15,200 crores and a rich pipeline of projects, Welspun Enterprises is positioned to drive execution and create long-term value across its verticals, capitalizing on the expanding infrastructure opportunities in India.

Business Segments

Welspun Enterprises Ltd operates primarily through two key business segments, contributing significantly to its overall portfolio.

  • Infrastructure: This segment focuses on the engineering, procurement, and construction (EPC) of infrastructure projects, particularly in roads, water supply, and urban development. The company engages in both Build-Operate-Transfer (BOT) and traditional EPC contracts. Some notable projects include the construction of major highways, rural water supply projects under the Jal Jeevan Mission, and various urban infrastructure initiatives. The infrastructure segment has seen robust growth, with sales reaching on TTM basis approx. to ₹32.27 billion in Q2FY25​. This segmentation has further diversifications such as water treatment, tunnelling, road constructions, etc.
  • Oil and Gas: In addition to infrastructure, Welspun Enterprises is involved in oil and gas exploration activities. This includes participation in the upstream oil and gas sector through a joint venture with Adani, focusing on a gas-based economy. The company also undertakes water transmission and distribution, alongside water and wastewater treatment services​.

The strategic focus of Welspun Enterprises on sustainable infrastructure development positions it well within India’s growing market, especially with government initiatives aimed at enhancing infrastructure across the nation. The company is actively participating in projects that address critical areas such as water management and urban development, which are pivotal for future growth​.

Key Subsidiaries and Their Information

Welspun Enterprises has several key subsidiaries that enhance its infrastructure portfolio. It also operates through various Associates and Joint Ventures.

  • Welspun Projects (Himmatnagar Bypass) Private Limited focuses on road infrastructure development, specifically the construction and management of bypasses to improve traffic flow.
  • Welspun Projects (Kim Mandvi Corridor) Private Limited is dedicated to developing vital highway corridors that enhance regional logistics.
  • Dewas Water projects Works Private Limited specializes in sustainable water supply infrastructure for urban areas, while
  • Welspun Buildtech Private Limited is involved in the construction of residential and commercial buildings.
  • Additionally, ARSS Bus Terminal Private Limited focuses on transportation infrastructure by developing bus terminals to improve public transport services.
  •  Grenoble Infrastructure Private Limited supports a wide range of urban and rural development projects.
  • DME Infra Private Limited works on diverse infrastructure projects across various sectors.
  • Welspun Sattanathapuram Nagapattinam Road Private Limited handles critical roadway construction and maintenance.
  • Welspun Aunta-Simaria Project Private Limited is engaged in project management, ensuring timely completion and quality oversight of construction projects.
  •  Welsteel Enterprises Private Limited supplies steel products and services for construction needs.
  •  Welspun – Kaveri Infraprojects JV collaborates on large-scale infrastructure initiatives.
  • Welspun EDAC JV Private Limited is involved in significant joint venture infrastructure projects, combining expertise from partners.
  • Welspun Michigan Engineers Limited provides engineering services and contributes to various construction projects, solidifying Welspun Enterprises’ capability to address multiple segments of the infrastructure market.

Q2 FY25 Highlights

  • Revenue from operations surged by 22.1%, reaching ₹788.5 crore, compared to ₹645.7 crore in the same quarter last year. Total income increased to ₹837.92 crore from ₹692.65 crore year-over-year, while expenses rose to ₹736.33 crore from ₹595.61 crore. Highest-ever H1 Income of ₹ 1,798 Crores achieved in period ending September 2024.
  • The company’s EBITDA grew by 21.7%, totaling ₹100.5 crore, up from ₹82.6 crore in the previous year. However, the EBITDA margin slightly decreased to 12.7%, down from 12.8% year-on-year.
  • Consolidated net profit for the September quarter of FY25 fell by approximately 11% to ₹61.56 crore, primarily due to higher expenses. Abhishek Chaudhary has been appointed as the new Chief Executive Officer (CEO), effective November 4, 2024.
  • The consolidated order book of the company stood at ₹15,200 crore at the end of September 2024.
  • The board approved the acquisition of an additional 9.99% stake in Welspun Michigan from Patel Engineering for around ₹100 crore.
  • Welspun Enterprises secured a significant design and build contract worth ₹1,989 crore from the Brihanmumbai Municipal Corporation (BMC). This contract involves designing and constructing a tertiary treated water conveyance tunnel from the Dharavi Wastewater Treatment Facility to the Ghatkopar WWTF.

Financial Summary

SWOT Analysis

Strengths:

  1. Diverse portfolio of projects.
  2. Strong financial backing.
  3. Proven expertise in infrastructure development.
  4. Robust order book with ongoing contracts.

Weaknesses:

  1. High capital expenditure leading to increased debt.
  2. Dependence on government contracts for revenue.
  3. Limited international presence.
  4. Risk of project delays.

Opportunities:

  1. Growing infrastructure sector in India.
  2. Potential for public-private partnerships (PPP).
  3. Expansion into renewable energy projects.
  4. Adoption of technological advancements in project execution.

Threats:

  1. Intense competition in the infrastructure space.
  2. Challenges related to regulatory and environmental compliance.
  3. Rising input costs affecting profitability.
  4. Economic slowdowns impacting project viability.