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Larsen & Toubro Limited — Q3 FY25
L&T reported a strong Q3 FY25 with group revenues of INR 64,700 crore (+17% YoY) and PAT of INR 3,360 crore (+14% YoY).
bullish
high
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L&T reported a strong Q3 FY25 with group revenues of INR 64,700 crore (+17% YoY) and PAT of INR 3,360 crore (+14% YoY). Order inflows surged 53% YoY to a record INR 1.16 trillion, driven by infrastructure, hydrocarbon, and renewable energy orders. The order book stands at INR 5.64 trillion (+20% YoY). EBITDA margin declined 70 bps to 9.7% due to revenue mix shift toward lower-margin P&M portfolio and margin compression in LTTS. Management raised revenue guidance to exceed 15% growth and expects to surpass the 10% order inflow guidance. Key risks include potential slippage in large orders, margin pressure from fixed-price contracts, and geopolitical uncertainties in the Middle East.
L&T ने वित्त वर्ष 2025 की तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल कमाई 64,700 करोड़ रुपये रही, जो पिछले साल से 17% ज्यादा है। मुनाफा 3,360 करोड़ रुपये रहा, जो 14% बढ़ा। नए ऑर्डर 53% बढ़कर रिकॉर्ड 1.16 लाख करोड़ रुपये पर पहुंचे, खासकर बुनियादी ढांचे, तेल-गैस और नवीकरणीय ऊर्जा से। कुल ऑर्डर बुक 5.64 लाख करोड़ रुपये है। मुनाफे की दर (EBITDA) थोड़ी घटकर 9.7% रही, क्योंकि कम मुनाफे वाले काम बढ़े। कंपनी ने कमाई वृद्धि 15% से अधिक रहने का अनुमान जताया है। जोखिमों में बड़े ऑर्डर में देरी, तय कीमत वाले ठेकों से दबाव और मिडिल ईस्ट में अनिश्चितता शामिल है।
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Slippage in large order closures
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Read Transcript →Quarter Snapshot
Order Inflows
INR 1.16 trillion
+53% YoY
Highest-ever quarterly order inflow, driven by infrastructure, hydrocarbon, and renewable energy orders.
Order Book
INR 5.64 trillion
+20% YoY
Robust order book provides strong revenue visibility for the next 2-3 years.
Net Working Capital to Revenue
12.7%
-390 bps YoY
Significant improvement in working capital efficiency due to strong customer collections.
Return on Equity (TTM)
16.1%
+90 bps YoY
Improved profitability and capital efficiency driving higher shareholder returns.
What Changed vs Last Quarter
NEW
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.
UPDATED
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.
UPDATED
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.
UPDATED
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.
DROPPED
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%.
NEW RISK
Slippage in large order closures
Management noted that large orders in Q4 pipeline could slip to subsequent quarters, impacting order inflow guidance.
NEW RISK
Margin pressure from fixed-price contracts
45% of order book is fixed-price; cost overruns or delays could compress margins, especially in hydrocarbon and thermal projects.
NEW RISK
Execution challenges in domestic infrastructure
Delayed payments in water projects under Jal Jeevan Mission led to temporary execution slowdown; recovery depends on fund flow.
RISK GONE
Delayed domestic ordering due to state fiscal constraints
State government CapEx may be moderated as some states divert funds to subsidies, potentially slowing order inflows.
RISK GONE
Execution risk on large fixed-price international contracts
Large hydrocarbon projects in the Middle East are fixed-price; any delay could compress margins.
RISK GONE
Hyderabad Metro losses persist despite ridership improvement
Metro reported a PAT loss of INR 2.07 billion in Q2, driven by interest costs; TOD monetization remains slow.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY24
Large hydrocarbon projects in the Middle East are fixed-price; any delay could compress margins.
Mentioned in Q1 FY24, Q3 FY24, Q4 FY24
Working capital intensity expected to increase from 12% to 15% as legacy collections normalize.
Mentioned in Q2 FY24, Q4 FY24
Projects & Manufacturing margin expected to be similar to FY24's 8.25%, with mix and competitive pressures offset by volume growth.
Mentioned in Q1 FY24, Q3 FY24
Trimmed from earlier 8.5%-9% band due to postponement of margin recognition on new jobs into FY25.
Fast read
Guidance and risk preview
Group revenues for 9M FY25 grew 18% YoY; strong order book supports upside to the initial 15% growth guidance.
Management noted that large orders in Q4 pipeline could slip to subsequent quarters, impacting order inflow guidance.
View Risks →