L&T shares rally 4.5% post Q3 results; PAT up 14% YoY to ₹3,359 crore; check 10 key takeaways

The company reported a mixed set of numbers on Thursday, for the quarter ending December 31, 2024 (Q3 FY25). The infrastructure major received its highest-ever quarterly order; however, the company's operational performance remained below Street estimates.

• L&T achieved consolidated revenue of ₹64,668 crore for the quarter ended December 31, 2024, registering a YoY growth of 17%. This was on the back of strong order book and ramp-up in execution momentum across its Projects & Manufacturing (P&M) businesses. The company posted a revenue of ₹55,100 crore in the year-ago period.

International revenues, at ₹32,764 crore, constituted 51% of the total revenues during the quarter, reflecting improved execution in the international P&M portfolio.

• It posted a consolidated profit after tax (PAT) of ₹ 3,359 crore, up 14% compared to the corresponding quarter of the previous year.

• L&T's earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 8.6% year-on-year to ₹6,255 crore, which, as per news reports, was lower than expectations of ₹6,636 crore, while EBITDA margins stood at 9.7% from 10.5% last year and were also lower than the estimates of 10.4%, CNBC-TV18 reported.

• The company received its highest-ever quarterly orders of ₹ 116,036 crore at the group level, registering a substantial YoY 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, the company added.

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% YoY. International orders at ₹144,739 crore during the nine months constituted 54% of the total.

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

Infrastructure Projects Segment

The Infrastructure Projects segment secured an order inflow of ₹ 49,070 crore during the quarter that ended December 31, 2024, registering a growth of 14% on a YoY basis. International orders constituted 74% of the total order inflow of the segment during the quarter, aided by the receipt of major orders in renewable and power transmission & distribution businesses.

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 the receipt of mega orders in both CarbonLite Solutions and Hydrocarbon businesses. International order inflow constituted 33% of the total order inflow during the quarter.

Energy Projects Segment

The Energy Projects segment secured orders valued at ₹ 38,818 crore during the quarter that 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.

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 the 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.

Outlook

L&T added that given the current economic position and the government's steps, the company will continue to pursue its objective of volume-led, profitable, and return-accretive growth. The company has robust order prospects for the near term and is confident of maintaining its growth momentum by leveraging emerging opportunities and maximising shareholder value on a sustainable basis.

It added that the forthcoming Union Budget is likely to strike a balance between policy continuity and fiscal discipline. "India would still be one of the fastest-growing major economies in the world, although the pace and sustainability of the growth trend could be shaped by how the country navigates challenges around global and financial market volatility, potential implications of intensified trade wars, and domestic inflationary impulses," the company added.

What management said

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."

During the quarter, the company has taken a strategic stake in E2E Networks intending to collaborate and unlock the full potential of 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 chairman added.