Larsen & Toubro Ltd is a global conglomerate primarily focused on offering engineering, procurement, and construction (EPC) solutions across key sectors, including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services, both in domestic and international markets.
| Result Analysis- Larsen & Toubro Ltd:(CMP Rs 3523) | Result Update: Q3FY25 |
| Stock Details | |
| Market Cap. (Cr.) | 474048.78 |
| Equity (Cr.) | 275.03 |
| Face Value | 2 |
| 52 Wk. high/low | 3963/3175 |
| BSE Code | 500510 |
| NSE Code | LT |
| Book Value (Rs) | 644.88 |
| Sector | Infrastructure |
| Key Ratios | |
| Debt-equity: | 1.35 |
| ROCE (%): | 14.45 |
| ROE (%): | 17.72 |
| TTM EPS: | 97.7 |
| P/BV: | 5.56 |
| TTM P/E: | 35.78 |
Result Highlights:
- Larsen & Toubro reported revenue of Rs 64667 crores in Q3FY25 which was 17.3% higher YoY and 5.1% higher QoQ.
- The total order inflow of the company stood at Rs 116000 crores in Q3FY25 which was 53% higher YoY. Total order book of the company on 31 Dec 2024 stood at Rs 564200 crores which is 20% up YoY.
- The infrastructure segment recorded highest order inflow, which was 42% of total order inflow followed by energy segment which was 34%.
- The infrastructure segment saw net revenue increase by 15% YoY, and the company has prospect pipeline of Rs 400 crores for the near future.
- The energy project segment also saw revenue growth of 41% YoY. The company also received two ultra-super critical power plant orders which boosts the company order book in this segment.
- The IT and technology segment also saw revenue growth of 8% YoY which was 120.6 crores in Q3FY25. The EBITDA margin of the segment fell 18.7% because of salary hikes and forex loss in LTIMindtree and LTTS.
- The company reported profit after tax of Rs 3358 crores in Q3FY25 which was 14% Up YoY and 1.1% down QoQ.
Financial Performance:
Shareholding Pattern:
| Particulars | Q3FY25 | Q3FY24 |
| FIIs | 21.79 | 26.32 |
| DIIs | 41.21 | 36.99 |
| Public | 35.80 | 35.38 |
| Non promoter | 0.97 | 1.09 |
| Government | 0.24 | 0.23 |
Management Commentary:
The company’s management is confident in its ability to meet or exceed its full-year guidance. To reach the order target of Rs 3.30 lakh crore, the company requires less than Rs 65,000 crore in Q4FY25. The management anticipates a growth of over 10 percent in order inflows and expects execution growth to exceed 15 percent. However, the operating profit margin is expected to remain stable year-on-year, around 8.2 percent.
Outlook:
Larsen & Toubro has reported an exceptionally strong quarter, demonstrating impressive growth across key financial metrics, including revenue, profitability, and its order book. The company’s solid performance reflects its robust positioning in the market. With the government placing significant emphasis on infrastructure development, the outlook for the industry remains highly favorable, presenting considerable opportunities for growth. Moreover, the management has expressed confidence in its ability to surpass its projected estimates for FY25, suggesting continued positive momentum in the coming quarters.
Results:
| Particulars(In c) | Q3FY25 | Q3FY24 | Q3FY24 | VAR [%] YoY | VAR [%] QoQ | FY24 | FY23 |
| Gross Sales | 64667.8 | 61554.6 | 55127.8 | 17.3 | 5.1 | 221112.9 | 183340.7 |
| Net Sales | 64667.8 | 61554.6 | 55127.8 | 17.3 | 5.1 | 221112.9 | 183340.7 |
| Other Income | 967.9 | 1101.3 | 837.8 | 15.5 | -12.1 | 4272.5 | 3605.5 |
| Total Income | 65635.7 | 62655.9 | 55965.6 | 17.3 | 4.8 | 225385.4 | 186946.2 |
| Total Expenditure | 56769.6 | 53637.5 | 47929.2 | 18.4 | 5.8 | 191925.2 | 157101.3 |
| PBIDT | 8866.0 | 9018.3 | 8036.4 | 10.3 | -1.7 | 33460.2 | 29844.9 |
| Interest | 2486.0 | 2439.4 | 2343.8 | 6.1 | 1.9 | 9260.8 | 9233.6 |
| PBDT | 6380.0 | 6578.9 | 5692.6 | 12.1 | -3.0 | 24199.4 | 20611.3 |
| Depreciation | 1047.0 | 1023.8 | 920.8 | 13.7 | 2.3 | 3682.3 | 3502.3 |
| PBT | 5333.0 | 5555.1 | 4771.8 | 11.8 | -4.0 | 20517.1 | 17109.0 |
| Tax | 1520.5 | 1493.2 | 1190.6 | 27.7 | 1.8 | 5127.7 | 5055.2 |
| Deferred Tax | -188.5 | -50.9 | -13.3 | -1321.3 | 270.3 | -180.3 | -571.0 |
| Reported Profit After Tax | 4001.0 | 4112.8 | 3594.5 | 11.3 | -2.7 | 15569.7 | 12624.9 |
| Minority Interest After NP | 615.1 | 703.6 | 645.5 | -4.7 | -12.6 | 2488.0 | 2059.9 |
| Profit/Loss of Associate Company | -27.1 | -14.0 | -1.7 | -1519.8 | 93.6 | -22.6 | -94.3 |
| Net Profit after Minority Interest & P/L Asso.Co. | 3358.8 | 3395.3 | 2947.4 | 14.0 | -1.1 | 13059.1 | 10470.7 |
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Source: Company website, EWL Research
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