Larsen & Toubro

News Summary:

Larsen & Toubro (L&T) is increasing its push into the global electrolyser market, betting on shifting supply chains and rising demand for green hydrogen to create a new growth engine, even as geopolitical tensions reshape energy strategies worldwide. On March 22, the company reported no major business impact from the Middle East conflict, which generates 35% of its revenues, though it noted significant challenges from logistics and supply chain disruptions and anticipated revenue risks if the situation does not improve within three months; 5% of its projects are stalled while 95% operate normally. Despite these challenges, L&T expects new opportunities in the Middle East post-conflict, driven by faster project execution and energy diversification, with clients accelerating ongoing projects and exploring alternative energy routes. The region accounts for 36% of L&T's order book, focusing on energy transition, power infrastructure, and hydrocarbon projects. Earlier that day, Deputy Managing Director & President Subramanian Sarma affirmed that L&T's operations in West Asia remain largely unaffected by ongoing geopolitical tensions, with approximately 95% of its project sites functioning normally. Separately, amid concerns over increased import bills due to commodity price hardening from the West Asia conflict, L&T hoped on March 22 that the government would sustain capital expenditure, even if it widened the fiscal deficit.