🏢 About the Company:
Larsen & Toubro Limited (L&T) is a leading Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. Headquartered in Mumbai, it has operations in over 30 countries and is a cornerstone of India’s infrastructure growth.
Key Highlights:
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Founded: 1938
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Industry: Engineering, Construction, Manufacturing
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Listed on: NSE (LT), BSE (500510)
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CIN: L99999MH1946PLC004768
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Website: www.larsentoubro.com
📊 Key Market Data (as of May 8, 2025):
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Market Cap: ₹4.5+ Lakh Crore
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P/E Ratio: 30.2
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52-Week High/Low: ₹4,056 / ₹2,694
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Current Price: ₹3,928
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Sector: Capital Goods – Heavy Electrical Equipment
📌 Summary of the Disclosure:
L&T has released its half-yearly statement of Related Party Transactions (RPT) for the period ended March 31, 2025. The report spans over 300 transactions between the parent company and more than 50 subsidiaries, associates, and other related entities. These include large-scale sales and purchases of goods and services, loans, inter-corporate deposits, interest receipts/payments, investments in debt and preference shares, and guarantees issued.
The volume of inter-company transactions reflects the company’s vast internal ecosystem, covering sectors such as real estate, finance, engineering, IT, and manufacturing. Key subsidiaries like LTIMindtree, L&T Finance, and L&T Special Steels and Forgings accounted for major movements, including unsecured loans exceeding ₹1,000 crore, significant receivables/payables, and over ₹16,000 crore in guarantees extended to L&T subsidiaries abroad.
These related party transactions are all audit-committee approved, with fair value accounting and regulatory compliance ensuring transparency.
✅ Points:
▪️ Disclosure Date: May 8, 2025
▪️ Period Covered: October 2024 – March 2025
▪️ No. of Transactions: 300+ RPTs
▪️ Major Subsidiaries: LTIMindtree, L&T Finance, L&T Metro Rail, L&T Hydrocarbon Saudi
▪️ High-Value Deals:
▪️ ₹1,777 Cr – Loans to L&T Special Steels
▪️ ₹3,895 Cr – Purchase from Modular Fabrication Yard
▪️ ₹54,257 Cr – Guarantee to Hydrocarbon Saudi
▪️ Interest Rate on Loans: 6.70%
▪️ Tenure: Typically 11–12 months
▪️ Purpose: Short-term investment & business support
▪️ Compliances: All audit-approved, fair-value based
📈 Effect on Share Market:
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Short-term: Neutral to mildly positive; transparency boosts investor confidence.
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Long-term: Reflects internal capital efficiency and inter-unit synergy; could signal robust pipeline execution.
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Stock Movement: Traders may view consistent internal activity as strength—watch for breakouts post-results.
👥 How This Helps Retail Traders:
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✔️ Ensures transparency in inter-company fund flows
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✔️ Signals where capital is being deployed internally
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✔️ Provides insights into sectors L&T is doubling down on
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✔️ Helpful for analyzing internal risk and debt structure
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✔️ Reveals strength of group ecosystem for long-term confidence
💬 Chat Summary Demo:
Q: What is L&T’s recent RPT disclosure about?
A: It covers over ₹70,000 crore in inter-company deals involving loans, sales, investments, and guarantees with its subsidiaries.
Q: Why does this matter?
A: It reflects how L&T manages internal capital, supports its group firms, and ensures transparent financial discipline.
Q: Should retail traders care?
A: Yes, it offers key signals on strategic priorities and internal performance assurance.
🎯 Phrase:
“Uncover how India’s engineering giant strategically moves ₹70,000+ Cr internally – and what it means for your portfolio.”
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
