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Informist, Tuesday, Jul. 29, 2025

 

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--L&T Apr-Jun consol net profit INR 36.17 bln
--Analysts saw L&T Apr-Jun consol net profit at INR 37.87 bln
--L&T Apr-Jun consol net profit INR 36.17 bln vs INR 27.86 bln year ago
--L&T Apr-Jun consol revenue INR 636.79 bln vs INR 551.20 bln year ago
--L&T consol order book INR 6.128 tln as on Jun 30, up 6% on quarter
--L&T Apr-Jun consol order inflow INR 944.53 bln vs INR 709.36 bln year ago
--L&T Apr-Jun consol EBITDA INR 63.18 bln vs INR 56.15 bln year ago
--L&T Apr-Jun consol EBITDA margin 9.9% vs 10.2% year ago
--L&T Apr-Jun consol EBITDA up 13% on year
--L&T Apr-Jun infra project customer revenue INR 287.57 bln, up 7% on year
--L&T Apr-Jun infra project EBITDA margin 5.7% vs 5.8% year ago

--L&T Apr-Jun infra project order inflow INR 410.24 bln, up 2% on year

--L&T Apr-Jun infra project order book INR 3.704 tln on Jun 30

--L&T Q1 energy project order inflow INR 314.20 bln vs INR 87.92 bln yr ago

--L&T Apr-Jun energy project customer revenue INR 124.70 bln, up 47% on year

--L&T Apr-Jun energy project EBITDA margin 7.3% vs 8.7% year ago

--L&T energy project orders surge Q1 on multiple packages in CarbonLite ops

--L&T Apr-Jun IT, tech svcs cutomer revenue INR 126.19 bln, up 10% on year

--L&T Apr-Jun IT, tech svcs EBITDA margin 19.5% vs 20.0% year ago

--L&T Apr-Jun intl orders INR 486.75 bln, 52% of total order inflow

--L&T: On track to achieve or surpass targets across financial parameters

 

By Rajesh Gajra

 

NEW DELHI – Engineering behemoth Larsen & Toubro Ltd. missed the Street's estimate on its bottom line for the June quarter but met analysts' expectations on its top line. The company's revenue growth came on the back of a rise in revenue from three key segments - energy projects, hi-tech manufacturing, and infrastructure projects. The bottom line growth was reined in by a slower growth in the company's operating profit compared to the revenue growth.

 

L&T reported a 30% on-year jump in its consolidated net profit to INR 36.2 billion in Apr-Jun, which was lower than analysts' estimate of INR 37.9 billion. The consolidated revenue from operations rose 16% on year to INR 636.8 billion, which was higher than the Street view of INR 630.7 billion for the reporting quarter.

 

L&T's consolidated earnings before interest, tax, depreciation, and amortisation increased 13% on year to INR 63.18 billion in Apr-Jun. The consolidated EBITDA margin contracted slightly to 9.9% from 10.2% in the year-ago quarter, led by a sharp contraction of 230 basis points on year to 15.1% in the hi-tech manufacturing segment. The energy projects segment's EBITDA margin also contracted to 7.3% from 8.7% a year ago, while that of infrastructure projects declined slightly to 5.7% from 5.8%.

 

L&T recorded a total order inflow of INR 944.5 billion in the June quarter, up 33% on year. International orders accounted for 52% of this order inflow. The consolidated order book as of Jun. 30 was INR 6.128 trillion, up 6% from Mar. 31. International orders made up 46% of L&T's consolidated order book as of Jun. 30.

 

SEGMENT REVENUE

The infrastructure projects segment, with the highest revenue share of 45%, recorded a 6.9% increase in revenue for the June quarter to INR 287.6 billion. The company's international revenue contributed 40% to the segment's revenue during the quarter. There was a slight increase of 2.4% on-year in the order inflow for the segment to INR 410.2 billion.

 

L&T's energy projects segment, which has a share of 20% in total revenue, recorded a substantial rise of 47% on year in revenue to INR 124.7 billion in the June quarter. The company said the strong revenue growth in this segment was "led by an execution ramp-up in international projects of the hydrocarbon business." The international revenue made up for 71% of segment revenue during the quarter, the company said. In the energy projects segment, the order inflow during the June quarter jumped nearly fourfold to INR 314.2 billion, with international order inflow making up for 24% of the total.

 

L&T's hi-tech manufacturing segment, which covers heavy engineering, precision engineering and systems, and electrolyser manufacturing, recorded a 75% on-year rise in revenue to INR 32.3 billion in the June quarter. The company said the strong revenue growth in this segment was attributable to improved execution in heavy engineering as well as precision engineering and systems businesses.

 

Around one-fourth of the hi-tech manufacturing revenue came from overseas customers. The segment recorded an order inflow of INR 18.9 billion, down 49% on year, due to the absence of large precision engineering and systems business order inflow compared to the year-ago period.

 

In the company's information technology and technology services segment, which includes businesses of digital platforms, data centers, and semiconductor technologies, and more importantly, the financials of its subsidiaries LTI Mindtree Ltd. and LTI Technology Services Ltd., the revenue increased 9.7% on year to INR 126.2 billion. The IT and technology services segment's EBITDA margin declined to 19.5% from 20% a year ago. The revenue of the financial services segment, which is represented by just the financials of the company's subsidiary L&T Finance Ltd., increased 8.4% to nearly INR 4 billion in Apr-Jun.

 

The development projects segment of L&T, which includes Hyderabad Metro operations, Nabha Power, and its green hydrogen business, recorded a 6% on-year decline to INR 12.4 billion. The company said this was largely due to lower plant load factor at the Nabha thermal power plant. The earnings before interest and tax of this segment declined 2.7% on year to INR 1.43 billion in the latest quarter.

 

Chairman and Managing Director S.N. Subrahmanyan said in a press release accompanying the earnings that the company's new-age businesses like semiconductors, data centers, and digital platforms "have been successfully incubated in the current strategic plan." He said the company is on track to achieve specified targets across all financial parameters.

 

L&T announced its June quarter results after market hours Tuesday. The company's shares closed up 2.1% at INR 3,495.60 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

 

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