Geopolitical tensions in the Middle East
The ongoing conflict in the Middle East could disrupt oil prices and project awards, impacting L&T's large international order pipeline (84% of international order book in Saudi Arabia).
LT / Q2-FY24 / risks
Keep the risk register visible.
Larsen & Toubro · Material risks, their source context, and severity in the latest available quarter.
Research layer active
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Risk intelligence
Material risks this quarter
high
Margin pressure from legacy EPC jobs
Legacy COVID-impacted jobs are compressing infrastructure margins (5.4% in Q2 vs 6.6% YoY). Management expects these to conclude by FY24 end, but any delay could further pressure margins.
Execution risk on ultra-mega orders
Analysts questioned the margin profile of the two ultra-mega hydrocarbon orders. Management acknowledged they are fixed-price contracts and declined to provide margin expectations, raising uncertainty.
Labor availability for specialized projects
While management downplayed current labor shortages, they admitted that securing skilled labor for complex projects (coastal roads, high-speed rail, underground metro) is becoming challenging.