Larsen & Toubro FY25 Annual Earnings Summary
4 quarters covered · ₹2,55,735 Cr revenue · ₹17,674 Cr PAT · 12.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Hyderabad Metro reported a loss of ₹214 crore in Q1, with a debt of ~₹12,500 crore; government support of ₹2,100 crore is pending.
Q1 FY25 · mediumManagement highlighted that skilled labor shortages could slow infrastructure execution, especially as India's CapEx cycle expands.
Q1 FY25 · mediumThe prospects pipeline dropped 10% YoY, primarily due to hydrocarbon project deferrals and losses, which could impact future order inflows.
Q1 FY25 · mediumManagement noted that geopolitical conflicts, supply chain disruptions, and commodity price volatility remain headwinds, particularly in the Middle East.
Q2 FY25 · mediumConflicts in West Asia and Red Sea disruptions could impact global trade, costs, and project timelines.
Q2 FY25 · mediumState government CapEx may be moderated as some states divert funds to subsidies, potentially slowing order inflows.
Q2 FY25 · mediumLarge hydrocarbon projects in the Middle East are fixed-price; any delay could compress margins.
Q3 FY25 · mediumManagement noted that large orders in Q4 pipeline could slip to subsequent quarters, impacting order inflow guidance.
Q3 FY25 · medium45% of order book is fixed-price; cost overruns or delays could compress margins, especially in hydrocarbon and thermal projects.
Q3 FY25 · mediumDelayed payments in water projects under Jal Jeevan Mission led to temporary execution slowdown; recovery depends on fund flow.
Q4 FY25 · mediumManagement highlighted that skilled labor shortages could slow infrastructure progress in India, exacerbated by elections and heat in Q1.
Q4 FY25 · mediumThe prospects pipeline fell 10% YoY to ₹9.07 trillion, primarily due to a decline in hydrocarbon prospects, partly from Saudi Aramco's CapEx deferrals.
What changed through the year
Q1 FY25 · Order inflow growth of 10% for FY25
Management reaffirmed the 10% order inflow growth guidance for FY25, despite a 10% drop in the prospects pipeline, citing a 22-23% conversion rate.
Q1 FY25 · P&M margin target of 8.2-8.25% for FY25
Management maintained the P&M margin guidance of 8.2-8.25% for FY25, with Q1 margins at 7.6% (up 20 bps YoY).
Q1 FY25 · Group revenue growth of 15% for FY25
Management reiterated the 15% group revenue growth guidance, with H2 expected to be stronger due to domestic execution ramp-up.
Q1 FY25 · CapEx of around INR 4,000 crore for FY25
Management guided for CapEx of approximately INR 4,000 crore for FY25.
Q2 FY25 · Group order inflow growth of 10% for FY25
Management reaffirmed guidance of 10% growth in consolidated order inflows for FY25, implying ~INR 3.3 lakh crore.
Q2 FY25 · Group revenue growth of 15% for FY25
Revenue guidance of 15% YoY growth for the group is maintained.
Q2 FY25 · P&M portfolio margin around 8.2-8.25% for FY25
Management expects P&M EBITDA margin to remain around the FY24 level of 8.2-8.25%.
Q2 FY25 · Net working capital to revenue target of ~15% by March 2025
NWC/sales ratio expected to be around 15% as of March 2025, improved from 16.7% in Sep 2023.
Q3 FY25 · Revenue growth to exceed 15% for FY25
Group revenues for 9M FY25 grew 18% YoY; strong order book supports upside to the initial 15% growth guidance.
Q3 FY25 · Order inflow growth to surpass 10% for FY25
9M FY25 order inflows up 16% YoY; strong Q4 pipeline of INR 5.51 trillion expected to exceed the 10% guidance.
Q3 FY25 · P&M EBITDA margin guidance maintained at 8.2% for FY25
Despite 7.6% margin in 9M, management expects Q4 margin to be higher to achieve full-year target.
Q3 FY25 · Net working capital to revenue to remain around 12.7% by March 2025
Improved from 16.6% in Dec 2023; management expects to sustain this level, better than the earlier 15% guidance.
Q4 FY25 · Order inflow growth of 10% for FY25
Management reaffirmed the 10% order inflow growth guidance despite a 10% drop in the prospects pipeline, citing a 22-23% conversion rate as achievable.
Q4 FY25 · Revenue growth of 15% for FY25
Group revenue growth guidance of 15% maintained, with domestic execution expected to pick up in H2 after a subdued Q1 due to elections and heat.
Q4 FY25 · P&M margin target of 8.2-8.25% for FY25
Projects & Manufacturing margin guidance maintained; Q1 margins improved 20 bps to 7.6%, with infrastructure margins up 70 bps.
Q4 FY25 · CapEx of ~₹4,000 crore for FY25
Capital expenditure for the year expected to be around ₹4,000 crore, in line with previous guidance.