Engineering and construction major Larsen and Toubro (L&T) on May 8 reported a consolidated net profit for the quarter ended March 2025 at Rs 5,497 crore, up 25 percent compared to Rs 4,396 crore in the same quarter last year, thus beating estimates.
The firm's consolidated revenue rose 11 percent to Rs 74,392 crore in Q4FY25 as against Rs 67,079 crore in Q4FY24, missing brokerage estimates of Rs 75,979 crore.
The firm declared final dividend of Rs 34 per share for FY25. The company has fixed Tuesday, June 3, 2025 as the Record Date for determining the entitlement of members for the proposed final dividend.
According to the average of a Moneycontrol poll of seven brokerages, the revenue of the construction major is likely to increase nearly 13 percent year-on-year (YoY) to Rs 75,979 crore, up from Rs 67,079 crore in the previous fiscal. Net profit is expected to increase around 10 percent YoY from Rs 4,396 crore. Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin is expected to increase to around 10.9 percent from 10.8 percent in Q4FY25.
L&T's EBITDA margin for Q4FY25 came in at 11 percent compared to 11 percent a year ago. For the complete year 2024-25, the company's EBITDA margin came in at 10.3 percent down from 11.6 percent a year ago.
The company said the order inflow for the quarter ended March 31, 2025 stood at Rs 89,613 crore, registering a growth of 24 percent over the corresponding quarter of the previous year when order inflows stood at Rs 72,150 crore. International orders were at Rs 62,739 crore, constituting 70 percent of the total order inflows.
The consolidated order book of the group is at Rs 579,137 crore as on March 31, 2025, with international orders having a share of 46 percent, L&T said. The order book of Rs 579,137 crore represents a growth of 22 percent over Rs 4,75,809 as on March 31, 2024 and Rs 3,99,526 as on March 31, 2023 and Rs 357,595 crore as on March 31, 2022.
For the full year FY25, the order growth was at 22 percent overshooting the order inflow growth guidance of 12-15 percent.
OUTLOOK
Going forward, L&T expects India's economic growth momentum to continue in the medium term facilitated by both public and private capital investment.
"Driven by continuing public infrastructure investments and a revival in private investments in areas like energy transition, data centers and real estate, India’s economic growth is expected to continue," the company said in a stock exchange filing.
L&T added that the government's prudent fiscal policies and efforts to improve domestic demand complimented by RBI’s accomodative monetary policy management
to anchor inflation within acceptable range is expected to improve the momentum and quality of growth.
The infrastructure major also said that countries in West Asia are expected to carry on their investments in traditional areas like oil and gas as well as basic infrastructure, besides earmarking funds for energy transition and non-oil industrialization.
L&T's international order inflow rose significantly in Q4FY25, nearly 70 percent of L&T international order inflow comes from West Asian or Middle Eastern countries. The company's international order inflow during Q4FY25 stood at Rs 62,739 crore much higher than the order inflow of Rs 25,217 crore seen in the same quarter last year.
On May 8, L&T's shares on BSE closed 0.28 percent lower at Rs 3,312 apiece.
Infrastructure Projects Segment
Segment-wise, L&T’s infrastructure projects segment secured order inflows of Rs 34,580 crore, during the quarter that ended March 31, 2025, which was 10.3 percent higher when compared to the corresponding quarter of the previous year, largely due to a low base in Q4FY24 when the company had seen a fall in orders due to the general elections in India.
The segment order book stood at Rs 357,053 crore as of March 31, 2025, with the share of international orders at 39 percent. The segment order book stood at Rs 361,282 crore as of December 31, 2024.
Revenues from the segment rose 3 percent on year to Rs 38,901 crore while profit from the segment rose 5 percent on year to Rs 2,756.41 crore.
The rise in profit was mainly on account of a rise in operating profit margin from the segment which rose to 8 percent in Q4FY25 from 7.9 percent in the same period a year ago.
L&T's infrastructure projects segment had seen a sequential fall in operating margins for the seven quarters as the company won infrastructure projects at very aggressive prices after the post-COVID-19, post-Russia-Ukraine (conflict) period in 2022-23.
The company's chief financial officer R Shankar Raman Raman said that L&T expects its operating margin to start improving from the next financial year as orders won at aggressive prices in 2022-23 will complete execution and new orders start being carried out.
At the end of June 2023, around 35-40 percent of L&T's then order book of Rs 3,01,159 crore from the infrastructure projects segment was made up of orders that were won at aggressive prices.
Energy Projects Segment
L&T secured order inflows of Rs 32,201 crore in this segment, during the quarter that ended March 31, 2025, which was nearly three times higher when compared to the corresponding quarter of the previous year.
Energy Projects' Segment order book stood at Rs 165,754 crore as on March 31, 2025, with the international order book constituting 73 percent.
Revenues from the segment rose 50 percent on year to Rs 12,253.61 crore while profit from the segment rose 7 percent on year to Rs 920.2 crore. The EBITDA margin of the segment came in at 8.1 percent for the quarter that ended March 31, 2025, improved compared to 11.4 percent over the corresponding quarter of the previous year, mainly because the company bid aggressively to win many international orders.
Hi-Tech Manufacturing Segment
L&T secured order inflows of Rs 2,263 crore in this segment, during the quarter that ended March 31, 2025, which was 75 percent lower when compared to the corresponding quarter of the previous year.
The Hi-Tech Manufacturing Segment order book stood at Rs 40,388 crore as of March 31, 2025, with the international order book constituting 11 percent.
Raman said that order inflow in the company's Hi-Tech Manufacturing segment has been slow due to the delays in the government awarding defense contracts.
"Going forward we expect the government to aggressively come out with defense orders which will help order inflow of our Hi-Tech Manufacturing segment," Raman said.
Revenues from the segment rose 36 percent on year to Rs 3,496 crore while profit from the segment rose 67 percent on year to Rs 593.8 crore.
IT & Technology Services Segment
L&T's revenues from this segment rose to Rs 12717.1 crore in this segment, during the quarter that ended March 31, 2025, which was 12 percent higher when compared to the corresponding quarter of the previous year.
International billing contributed 92 percent of the total customer revenues of the segment.
Profit from the segment fell 1 percent on the year to Rs 1857 crore. The EBITDA margin for the segment was at 18.2 percent for the quarter as compared to 20 percent in the corresponding quarter of the previous year. The segment margin was impacted by lower operating leverage on the back of modest revenue growth.
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