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Informist, Thursday, May 8, 2025

 

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--L&T Jan-Mar consol net profit INR 54.97 bln
--Analysts saw L&T Jan-Mar consol net profit INR 48.14 bln
--L&T Jan-Mar consol net profit INR 54.97 bln vs INR 43.96 bln year ago
--L&T Jan-Mar consol revenue INR 743.92 bln vs INR 670.79 bln year ago
--L&T to pay INR 34 per share final dividend
--L&T FY25 consol net profit INR 150.37 bln vs INR 130.59 bln year ago
--L&T FY25 consol revenue INR 2.557 tln vs INR 2.211 tln year ago
--L&T consol order book INR 5.791 tln as on Mar 31
--L&T Jan-Mar consol order inflow INR 896.13 bln, up 24% on year
--L&T FY25 infra project order inflow INR 1.732 tln, up 21% on year
--L&T infra project order book INR 3.571 tln on Mar 31, overseas share 39%
--L&T Jan-Mar infra project revenue INR 389.01 bln, up 2% on year
--L&T FY25 infra project EBITDA margin 6.4% vs 6.2% year ago
--L&T Jan-Mar energy project revenue INR 122.49 bln, up 49% on year
--L&T FY25 energy project EBITDA margin 8.4% vs 10.0% year ago
--L&T Jan-Mar tech svcs revenue INR 124.81 bln, up 11% on year

 

By Rajesh Gajra

 

NEW DELHI – Larsen & Toubro Ltd. beat the Street's expectations on net profit, but missed its view on revenue for the March quarter. The construction and engineering behemoth reported a 25% jump on year in its consolidated net profit to INR 54.97 billion, sharply above analysts' estimate of INR 48.1 billion. A slight expansion in operating margin, a decline in finance costs, stable depreciation and amortisation expenses, and a significant one-time gain aided the company's bottom line performance in the March quarter.

 

The company reported an on-year increase of 11% in its consolidated revenue to INR 743.9 billion, missing the Street's view of INR 764.7 billion. The top line performance was aided by a 24% on-year rise in consolidated order inflow to INR 896.1 billion during the quarter. L&T consolidated order book was at INR 5.791 trillion as on Mar. 31 against INR 5.642 trillion as on Dec. 31.

 

Chairman and Managing Director S.N. Subrahmanyan said in a press release accompanying the March quarter earnings that the company remained cautiously optimistic in the backdrop of turbulent global geopolitical dynamics. As far as the India business is concerned, Subrahmanyan said India's economic growth is expected to continue, and will be driven by continuing public infrastructure investments and a revival in private investments in areas such as energy transition, data centers and real estate."

 

L&T's bottom line growth in the March quarter was aided by a 13% on-year increase in the consolidated earnings before interest, taxes, depreciation, and amortisation to INR 82.0 billion, with the EBITDA margin inching up to 11.0% from 10.8%. An exceptional gain, net of tax, of INR 4.75 billion due to "partial reversal of an earlier impairment provision for funded resources in the erstwhile L&T Special Steels and Heavy Forgings Private Ltd. joint venture." Finance costs in the March quarter fell 20% on year to INR 7.46 billion.

 

Apart from the revenue growth and the one-time gain, the EBITDA increase was aided by a decline of 1.2% on year in cost of construction materials consumed to INR 189.6 billion, and a muted 2.7% increase in sub-contracting charges to INR 111.4 billion. On the other hand, employee benefits expenses rose sharply 15% on year to INR 123.6 billion, and other manufacturing, construction, and operating expenses rose 23% on year to INR 83.50 billion.

 

L&T's top line growth in the March quarter was on the back of a strong 49% on-year growth in the energy projects segment revenue to INR 122.5 billion, with the share of international revenue at 61%. The hi-tech manufacturing segment also contributed significantly to the revenue growth of the company in the March quarter, recording 36% on-year rise in revenue to INR 33.5 billion. The segment's export sales made up for 23% of the segment revenue.

 

However, the company's largest segment in terms of revenue, infrastructure projects, recorded a weak top line performance in the March quarter. The revenue in the segment increased only 2% on year to INR 389.0 billion, of which international revenue share was 42%. The company blamed the low growth of "faster execution in the previous quarters." The IT and technology services segment of L&T recorded a revenue growth of 11% on year to INR 124.8 billion in the March quarter, and international billings contributed 91% of the segment revenue.

 

The company's strong growth of a 24% on-year increase in consolidated order inflow to INR 896.1 billion in the March quarter was largely on the back of a substantial growth of more than 100% in order inflow in the energy projects segment to INR 322.0 billion. The company said this was mainly on account of receipt of ultra-mega Qatar Energy order in the hydrocarbon business of the segment.

 

There was a 10% on-year increase in order inflow in the infrastructure projects segment to INR 345.8 billion. This segment's outstanding order book at the end of March quarter was INR 3.570 trillion, with overseas share of 39%. Bucking the growth trend was the company's hi-tech manufacturing segment, which saw the order inflow fall 74% on year to INR 22.6 billion.

 

In the whole of 2024-25 (Apr-Mar), the consolidated net profit of L&T increased 15% on year to INR 150.4 billion, while the revenue from operations increased 16% to INR 2.557 trillion. The infrastructure projects order inflow in FY25 rose 21% on year to INR 1.732 trillion. The EBITDA margin of the infrastructure projects segment inched up to 6.4% from 6.2% in the previous year, while that in the energy projects segment contracted to 8.4% from 10%.

 

The company announced a final dividend of INR 34 per share. On Thursday, shares of L&T closed 0.1% higher at INR 3,323.90 on the NSE.  End

 

Edited by Deepshikha Bhardwaj

 

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