Analysts had expected government capex to further increase by 10-15% for FY25. In FY24, the government had pegged a capex target of Rs 10 lakh crore. Of the total outlay for FY25, the government has allocated Rs 2.78 lakh crore for the road transport and highways ministry, and Rs 2.55 lakh crore for railways.
The stock of Larsen & Toubro has gained 11% over the past three months compared with the 7% gain in the S&P BSE Capital goods index. The outperformance of India’s largest infrastructure company is likely to sustain given the strong order flow and execution in the September quarter.
Consolidated revenues for the second quarter rose 19% to Rs 51,024 crore, primarily aided by improved execution of the large order book and accelerated progress in the projects and manufacturing portfolio. Energy segment recorded revenues of Rs 6,788 crore in the second quarter, up 22% year-on-year. Order inflows were at Rs 40,141 crore, taking the segment s order book past Rs 1 lakh crore for the first time ever.
With this, L&T has become the second company after BSE Ltd. to revise its share buyback price. Tuesday, September 12 is the record date for the company s buyback. Timeline for opening and closing of the buyback issue is yet to be declared.