Wednesday, February 12, 2025

L&T announces its Financial Results for the quarter ended December 31, 2024

Record Quarterly Order Inflow; crosses ₹ 1 lakh crore for the first time ever

A Robust Order Book at ₹ 564,223 crore

Order Inflow  53%, Revenue  17%, PAT 14%

National, January 30, 2025: Larsen & Toubro achieved Consolidated Revenues of ₹ 64,668 crore for the quarter ended December 31, 2024 registering a y-o-y growth of 17% on the back of strong order book and ramp up in execution momentum across its Projects & Manufacturing (P&M) businesses. International revenues during the quarter at ₹ 32,764 crore constituted 51% of the total revenues, reflective of improved execution in international P&M portfolio.

For  the  nine  months  ended  December  31,  2024,  the  Consolidated  Revenues  at

₹ 181,342 crore recorded a y-o-y growth of 18% with international revenues during the nine months at ₹ 91,070 crore constituting 50% of the total revenues.

The Company for the quarter ended December 31, 2024, posted a Consolidated Profit After Tax (PAT) of ₹ 3,359 crore, registering a growth of 14% compared to the corresponding quarter of the previous year.

Similarly, for the nine months ended December 31, 2024, Consolidated Profit After Tax at

₹ 9,540 crore, registered a growth of 10% y-o-y basis.

The Company received its highest ever quarterly orders of ₹ 116,036 crore at the group level during the quarter ended December 31, 2024, registering a substantial y-o-y growth of 53%. During the quarter, orders were received across multiple geographies and diverse sectors like Thermal Power, Renewable, Power Transmission, Precision Engineering, Minerals & Metals, Water, Commercial Buildings and Hydrocarbon Onshore. International orders at

₹ 62,059 crore during the quarter comprised 53% of the total order inflow.

On a cumulative basis, the order inflow for the nine months ended December 31, 2024 stood at ₹ 267,018 crore, registering a growth of 16% y-o-y. International orders at ₹ 144,739 crore during the nine months constituted 54% of the total.

The consolidated order book of the group as on December 31, 2024, is at ₹ 564,223 crore registers a growth of 19% over March 2024, with the share of international orders at 42%.

Commenting on the results, S.N. Subrahmanyan, Chairman and Managing Director said: “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.

The projects and manufacturing businesses of the Company continue to perform well enabled by the improved productivity pursuant to our sustained digital adoption efforts.

During the quarter, the Company has taken a strategic stake in E2E Networks with an aim to collaborate and unlock the full potential in AI and the digital transformation wave and offer secure cloud services, which aligns with our vision of diversifying the portfolio to leverage the technology needs of tomorrow.

The upcoming Union Budget is expected to emphasize building infrastructure, adoption of technology, improving learning efficacy & skill development and policy continuity towards Energy Transition which will provide necessary impetus to the Indian economy. We expect the Middle East to continue to strengthen its physical and digital infrastructure besides continuing to monetise its Oil & Gas assets. Amid this backdrop, the Company will continue to pursue excellence and leverage its strengths to seize new opportunities while remaining resilient.”

Segment-wise Performance Highlights

Infrastructure Projects Segment

The Infrastructure Projects segment secured order inflow of ₹ 49,070 crore, during the quarter ended December 31, 2024, registering a growth of 14% on y-o-y basis. International orders constituted 74% of the total order inflow of the segment during the quarter aided by receipt of major orders in Renewable and Power Transmission & Distribution businesses.

The segment order book stood at ₹ 361,282 crore as on December 31, 2024, with the share of international orders at 37%.

For the quarter ended December 31, 2024, the customer revenues at ₹ 32,134 crore registered a y-o-y growth of 15%, majorly attributed to the execution of a large order book. International revenues constituted 42% of the total customer revenues of the segment during the quarter.

The EBITDA margin of the segment during the quarter ended December 31, 2024 has remained stable at 5.5% compared to corresponding quarter of the previous year.

Energy Projects Segment

The Energy Projects segment secured orders valued at ₹ 38,818 crore during the quarter ended December 31, 2024 registering a growth of >100% on a y-o-y basis, aided by receipt of mega orders in both CarbonLite Solutions and Hydrocarbon businesses respectively. International order inflow constituted 33% of the total order inflow during the quarter.

The segment order book was at ₹ 145,827 crore as on December 31, 2024, with the international order book constituting 66%.

For the quarter ended December 31, 2024, the customer revenues at ₹ 11,051 crore registered a healthy growth of 41% y-o-y majorly attributed to execution ramp up in international projects. International revenues constituted 66% of the total customer revenues of the segment during the quarter.

The EBITDA margin of the segment was at 8.3% for the quarter ended December 31, 2024 lower compared to corresponding quarter of the previous year at 9.7%, reflective of the stage of execution of jobs in the portfolio.

Hi-Tech Manufacturing Segment

The segment secured orders valued at ₹ 8,423 crore during the quarter ended December 31, 2024 registering a growth of >100% over the previous year, with receipt of a key order in the Precision Engineering & Systems business. Export orders constituted 15% of the total order inflow of the segment during the quarter.

The order book of the segment was at ₹ 41,769 crore as on December 31, 2024, with the share of export orders at 11%.

For the quarter ended December 31, 2024, the customer revenues at ₹ 2,433 crore registered a growth of 18% y-o-y, with improved progress in jobs of the Precision Engineering & Systems business. International revenues constituted 23% of the total customer revenues of the segment during the quarter.

The EBITDA margin of the segment during the quarter ended December 31, 2024 was at 18.2% vis-à-vis 16.7% recorded in the corresponding quarter of the previous year. Margin is higher mainly on account of timely execution and cost savings in Heavy Engineering business.

IT & Technology Services (IT&TS) Segment

The segment recorded customer revenues of ₹ 12,061 crore for the quarter ended December 31, 2024, registering a y-o-y growth of 8%. However, encouraging deal wins from clients coupled with a positive outlook towards discretionary spends is signaling potential momentum pick up ahead. International billing contributed 93% of the total customer revenues of the segment for the quarter ended December 31, 2024.

The EBITDA margin for the segment was at 18.7% for the quarter ended December 31, 2024 lower compared to 20.7% in the corresponding quarter of the previous year. The segment margin was impacted mainly due to higher employee costs and forex loss.

Financial Services Segment

The segment recorded income from operations at ₹ 3,881 crore during the quarter ended December 31, 2024, registering a y-o-y growth of 14%, attributed to following a disbursement strategy towards retailisation, market expansion with appropriate risk guardrails.

The total Loan Book at ₹ 95,120 crore grew by 11% as compared with March 2024 at

₹ 85,565 crore. Further, on a y-o-y basis the total Loan Book reported growth of 16%. The Retail loan book now constitutes 97% of the total loan book as on December 31, 2024.

The segment PBT for the quarter ended December 31, 2024 remained stable at ₹ 824 crore.

Development Projects Segment

The segment recorded customer revenues of ₹ 1,434 crore during the quarter ended December 31, 2024 registering a growth of 18% y-o-y basis aided by growth in Nabha Power.

The segment EBIT for the quarter ended December 31, 2024 registered a growth of 26% y- o-y basis to ₹ 149 crore compared to corresponding quarter of the previous year, mainly due to improved ridership in Hyderabad Metro and higher PLF in Nabha Power.

“Others” Segment

“Others” segment comprises (a) Realty (b) Industrial Valves (c) Construction Equipment & Mining Machinery and (d) Rubber Processing Machinery.

Customer revenues of the segment during the quarter ended December 31, 2024 at

₹ 1,674 crore registered a moderate growth of 9% y-o-y, mainly contributed by higher handover of residential units in Realty business. Export sales constituted 11% of the total customer revenues of the segment during the quarter, mainly attributable to Industrial Valves business.

During the quarter ended December 31, 2024, the segment EBITDA margin was at 27.5% higher vis-à-vis corresponding quarter of the previous year at 24.4% mainly due to a favourable revenue mix in Valves and Construction Equipment & Mining Machinery business.

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