Larsen & Toubro (LT) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly order inflow of INR 1.16 trillion (₹116,036 crore), up 53% year-over-year, with order book at INR 5.64 trillion (₹564,223 crore), up 20% year-over-year.

• Group revenues for Q3 FY25 grew 17% year-over-year to INR 647 billion (₹64,668 crore), with international revenues constituting 51%.

• Consolidated PAT for Q3 FY25 rose 14% year-over-year to INR 33.6 billion (₹3,359 crore), reflecting increased activity and improved treasury operations.

• Return on equity (trailing 12 months) at 16.1%, up 90 basis points year-over-year.

• International orders constitute 42% of the order book; strong execution in Infrastructure, Energy, and Hi-Tech Manufacturing segments.

Financial highlights

• Q3 FY25 EBITDA at INR 62.5 billion (₹6,255 crore), margin at 9.7%, flat year-over-year.

• Net working capital to revenue improved to 12.7% from 16.6% a year ago.

• Order inflow for 9M FY25: INR 2.67 trillion (₹267,018 crore), up 16% year-over-year; order book at Dec 31, 2024: INR 5.64 trillion (₹564,223 crore), up 19% since March 2024.

• Group collections (excluding financial services) up 20% YoY to INR 591 billion.

• Decline in finance cost due to lower borrowing levels and rates; depreciation increased from higher capex.

Outlook and guidance

• Expects to surpass FY25 order inflow guidance of 10% growth, with nine-month inflows already up 16%.

• Revenue growth guidance for FY25 set at 15%, with nine-month growth at 18%, indicating potential upside.

• EBITDA margin guidance for Projects and Manufacturing at 8.2% for FY25.

• Indian GDP growth projected at 6.5%-6.8% for FY25; infrastructure spending expected to rise post-elections.

• Middle East and GCC regions expected to continue infrastructure and energy investments.