Larsen & Toubro (L&T) reported a 14% year-on-year rise in its consolidated net profit attributable to owners for Q3 FY25, reaching ₹3,358.84 crore, compared to ₹2,947.36 crore in the same quarter last year. However, sequentially, net profit declined 1.07%. L&T shares surged 4.28% to ₹3,567.50 in Wednesday’s session, reflecting investor optimism over the company’s strong performance.
Revenue and order book growth
L&T’s consolidated revenue from operations for Q3 rose 17.3% YoY to ₹64,667.78 crore, compared to ₹55,127.82 crore in Q3 FY24. On a quarterly basis, revenue increased 5.1%, driven by strong order inflow and steady execution across segments. The company achieved its highest-ever quarterly order inflow of ₹1,16,036 crore, reflecting a 53% YoY growth, with major contributions from thermal power, renewable energy, power transmission, minerals & metals, and hydrocarbon onshore sectors.
L&T’s international operations contributed ₹32,764 crore, or 51% of total revenue, driven by improved execution in global projects. International orders accounted for ₹62,059 crore, making up 53% of overall inflow. As of December 31, 2024, L&T’s consolidated order book stood at ₹5,64,223 crore, reflecting a 19% YoY growth.
EBITDA and margins
L&T recorded an EBITDA of ₹6,255 crore, up from ₹5,759 crore YoY, but EBITDA margin declined to 9.7% from 10.4%, primarily due to higher execution costs.
Brokerage updates
Following the earnings, several brokerages adjusted their target prices for L&T:
- Nomura maintained a Buy rating but reduced its target price to ₹3,820 from ₹4,100.
- Morgan Stanley maintained an Overweight rating and raised its target price to ₹4,278 from ₹3,875.
- JP Morgan maintained an Overweight rating but reduced its target price to ₹4,180 from ₹4,360.
- Jefferies maintained a Buy rating but revised its target price to ₹4,500 from ₹4,600.
- Macquarie maintained an Outperform rating with a target price of ₹4,210.
Stock performance
L&T’s stock traded at ₹3,567.50, hitting an intraday high of ₹3,576.40 and a low of ₹3,481.05. The stock’s 52-week range is ₹3,175.05 – ₹3,963.50. The company’s market capitalization stands at ₹4.91 lakh crore, with a P/E ratio of 36.37 and a dividend yield of 0.78%.
Management commentary
S.N. Subrahmanyan, Chairman & Managing Director of L&T, stated: “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.”
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
