Recent News & Developments: Larsen & Toubro Limited

1. Corporate Actions

L&T has actively engaged in various corporate actions, including stake sales, regulatory filings, and other developments as outlined below.

2. Mergers and Acquisitions

• Completed the sale of its stake in L&T Infrastructure Development Projects Ltd. to Epic Concesiones Private Limited on April 10, 2024.
• Divested a 51% stake in LTIDPL to Edelweiss, improving Return on Equity (ROE).

3. Dividends and Dividend Policy

L&T approved financial results for Q4 FY24 and recommended a final dividend during the AGM, scheduled in the upcoming quarter.

4. Share Buybacks

No share buybacks were announced during the recent quarter.

5. Capital Raising Activities

No significant capital raising activities were noted in the latest quarter.

6. Changes in Shareholding Patterns

L&T allotted 93,918 equity shares to grantees under its ESOP scheme, with a focus on employee engagement and incentives.

7. Product Launches and New Services

• L&T launched new renewable energy and grid systems projects, strengthening its leadership in clean energy solutions.
• Secured offshore contracts from ONGC for the DUDP-WP project off India’s west coast.

8. Market Reception and Impact

The market has responded positively to L&T’s recent contract wins in renewable energy and offshore sectors, highlighting the company's leadership in sustainable energy solutions.

9. Research and Development Initiatives

L&T continues its R&D efforts in emerging areas like energy storage and green technologies, driving its commitment to sustainability and innovation.

10. Strategic Changes

• L&T is expanding into renewable energy markets, with significant focus on solar and energy storage solutions.
• The company completed the divestiture of non-core assets like LTIDPL to enhance operational focus.

11. Strategic Partnerships and Alliances

L&T formed key partnerships to develop offshore projects and grid systems, particularly in the Middle East and India.

12. Organisational Restructuring

• Mr. M.V. Satish ceased as Whole-time Director on April 7, 2024.
• Mr. Subramanian Sarma and Mr. R Shankar Raman were elevated to higher leadership roles within the company.

13. Regulatory Updates

• L&T received multiple tax orders and penalties from the Commissioner of Customs and CGST authorities, including a penalty of ₹60.84 crore from Qatar’s General Tax Authority. L&T plans to appeal these orders.
• The company submitted a certificate under SEBI regulations for compliance and disclosed non-convertible debenture (NCD) details as per SEBI regulations.

14. Legal Proceedings

• L&T is engaged in multiple legal disputes related to tax demands, including a ₹374.68 crore tax demand which the company is contesting.
• L&T Hydrocarbon Engineering Limited received penalties related to input tax credit disallowance, and appeals are being filed.

15. Industry Developments Affecting Larsen & Toubro

Government incentives and public capex initiatives in India have provided a strong tailwind for L&T’s growth, particularly in infrastructure and energy sectors.