Larsen & Toubro (L&T), a global leader in engineering, procurement, and construction (EPC), has posted financial results for the quarter ending December 31, 2024.
Key Highlights:
- Consolidated Revenues: ₹64,668 crore (17% YoY growth)
- Quarterly Order Inflow: ₹1,16,036 crore (53% YoY growth)
- Consolidated PAT: ₹3,359 crore (14% YoY growth)
- Order Book: ₹564,223 crore (19% growth from March 2024)
L&T has registered the highest-ever quarterly order inflow of ₹1,16,036 crore in Q3FY25, marking a 53% year-on-year growth. This increase has been driven by multiple sectors, including Thermal Power, Renewable Energy, and Hydrocarbons, contributing significantly to the overall success. The total order book for the group has reached ₹564,223 crore, reflecting a 19% increase from March 2024, with 42% of orders coming from international markets.
The company achieved consolidated revenues of ₹64,668 crore, a 17% YoY growth, fueled by strong execution across its Projects & Manufacturing (P&M) businesses. This growth was also bolstered by international revenue, which constituted 51% of total revenues for the quarter, reaching ₹32,764 crore.
For the nine months ended December 31, 2024, L&T reported consolidated revenues of ₹181,342 crore, marking an 18% YoY increase. International revenues during this period amounted to ₹91,070 crore, making up 50% of the total.
The company’s Profit After Tax (PAT) for the quarter stood at ₹3,359 crore, reflecting a 14% YoY increase, and for the nine months, PAT reached ₹9,540 crore, an overall growth of 10% compared to the same period last year.
Record Quarterly Order Inflow:
- Order Inflow: ₹1,16,036 crore (53% YoY growth)
- International Orders: ₹62,059 crore (53% of total inflow)
- Total Order Book: ₹564,223 crore (19% growth from March 2024)
L&T’s order inflow reached ₹1,16,036 crore during Q3FY25, the highest in the company’s history. A significant portion of these orders—53%—came from international markets, demonstrating the strength of its global presence.
The total order book at the end of the quarter stands at ₹564,223 crore, up 19% from March 2024, with 42% of the order book coming from international markets.
Segment-wise Performance:
L&T’s performance across different business segments remains strong:
- Infrastructure Projects Segment:
- Order Inflow: ₹49,070 crore (14% YoY growth)
- Customer Revenues: ₹32,134 crore (15% YoY growth)
- EBITDA Margin: Stable at 5.5%
The Infrastructure segment continued to show growth with significant orders from Renewable Energy and Power Transmission & Distribution sectors. International markets played a key role, constituting 74% of the total order inflow for this segment.
- Energy Projects Segment:
- Order Inflow: ₹38,818 crore (>100% YoY growth)
- Customer Revenues: ₹11,051 crore (41% YoY growth)
- EBITDA Margin: 8.3% (down from 9.7% last year)
The Energy Projects segment achieved a substantial 100%+ YoY growth in order inflow, driven by mega orders in the CarbonLite Solutions and Hydrocarbon businesses. The segment’s revenues grew by 41%, with international projects making up 66% of the customer revenues.
- Hi-Tech Manufacturing Segment:
- Order Inflow: ₹8,423 crore (>100% YoY growth)
- Customer Revenues: ₹2,433 crore (18% YoY growth)
- EBITDA Margin: 18.2% (up from 16.7% last year)
The Hi-Tech Manufacturing segment benefitted from a significant order inflow in the Precision Engineering & Systems business. The segment’s EBITDA margin also improved due to cost savings and improved execution in the Heavy Engineering business.
- IT & Technology Services (IT&TS) Segment:
- Customer Revenues: ₹12,061 crore (8% YoY growth)
- EBITDA Margin: 18.7% (down from 20.7%)
The IT & TS segment recorded moderate growth in revenues, with 93% of the revenues coming from international markets. The EBITDA margin saw a slight dip due to increased employee costs and foreign exchange losses.
- Financial Services Segment:
- Income from Operations: ₹3,881 crore (14% YoY growth)
- Loan Book: ₹95,120 crore (11% growth from March 2024)
The Financial Services segment saw an increase in income from operations and a significant rise in its loan book, which grew by 11% compared to March 2024. The retail loan book now comprises 97% of the total loan book.
- India’s Economic Growth: The Indian economy is poised for steady growth with projections of a 6.5-6.8% GDP growth for FY25. Strong government spending on infrastructure will further drive the economy.
- International Expansion: L&T expects continued growth in the Middle East and GCC regions, benefiting from infrastructure and energy sector investments.
- Union Budget Expectations: The company anticipates that the Union Budget will focus on infrastructure and digital transformation, which will create new growth opportunities.
S.N. Subrahmanyan, Chairman and Managing Director, said:
“This quarter has ended on a strong note for us. We have achieved the highest-ever quarterly order inflow in the Company’s history, consequently our order book is at a record high. Our commitment to timely execution, operational excellence, and a customer-centric approach is reflected in our healthy financial performance.”
L&T remains focused on delivering sustainable growth and maximizing shareholder value while continuing to seize opportunities in both domestic and international markets.
