Larsen & Toubro (L&T), a leading player in engineering and construction, has reported impressive financial results for Q4 FY25, surpassing analyst projections. The company achieved a net profit of ₹5,497 crore, reflecting a remarkable 25% increase compared to the same quarter last year. This figure exceeded expectations, which were set at ₹4,545 crore, and represented a robust 63.7% sequential growth.
Revenue Growth Falls Short of Expectations
Despite the stellar profit figures, L&T’s revenue did not meet expectations. The company recorded a 10.9% year-on-year increase in revenue, totaling ₹74,392 crore, but fell short of the anticipated ₹76,298 crore. On a sequential basis, revenue improved by 15%, indicating a positive trend.
- Q4 FY25 Highlights:
- Net Profit: ₹5,497 crore (up 25% YoY)
- Revenue: ₹74,392 crore (up 10.9% YoY)
- Sequential Revenue Growth: 15%
Solid EBITDA and Margins
L&T’s EBITDA for the quarter was impressive, standing at ₹8,203 crore, which is a 13.4% increase year-over-year. The EBITDA margin also saw a slight improvement, rising from 10.8% in Q3 to 11% in Q4, reflecting the company’s commitment to operational efficiency.
Strong Order Inflows
The company experienced robust order inflows, totaling ₹89,613 crore in Q4, marking a 24% year-on-year growth. Notably, international orders comprised a significant portion, amounting to ₹62,739 crore, which is approximately 70% of the total inflows. L&T disclosed that these international orders constituted 46% of its order book as of March 2025.
- FY25 Order Highlights:
- Total Orders: ₹3,56,631 crore (up 18% YoY)
- International Contribution: ₹2,07,478 crore (58% of total orders)
- Consolidated Order Book: ₹5,79,137 crore (up 22% YoY)
Promising Prospects Ahead
Looking forward to FY26, L&T has set its sights on order prospects worth an astonishing ₹19 lakh crore, split between ₹7 lakh crore in domestic orders and ₹12 lakh crore in international opportunities.
The company’s board has also proposed a final dividend of ₹34 per equity share for FY25, showcasing its strong financial position.
Diverse Projects Fueling Growth
Throughout the past year, L&T has successfully secured contracts across various sectors and regions. This includes projects in renewable energy, transmission, and distribution, as well as infrastructure developments such as airports, residential buildings, and metro systems.
SN Subrahmanyan, the chairman and managing director, remarked on the company’s successful year, noting it was marked by "outstanding performance" and record order inflows. He emphasized that the combination of traditional core business growth and investment in technologically advanced sectors is crucial for future diversification.
Economic Outlook and Strategic Investments
Subrahmanyan highlighted that ongoing public infrastructure investments and a resurgence in private sector funding in areas like energy transition and real estate are expected to drive India’s economic growth further. He also praised the government’s fiscal strategies and the Reserve Bank of India’s accommodative monetary policies, which are aimed at sustaining growth momentum.
In a media call, CFO Shankar Raman projected a 10% growth in orders over the next 12 months, bolstered by favorable market conditions in international markets. He noted that while there are substantial opportunities within India for infrastructure development, it remains early to assess the implications of geopolitical tensions on project awards.
Overall, L&T’s robust performance and strategic insights position it well for a promising future in a growing economy.
