 "L&T Q2 FY25 results: Net profit increases 5.4% to Rs 3,395 crore")
Engineering conglomerate Larsen & Toubro (L&T) on Wednesday posted a 5.4 per cent rise in its year-on-year (Y-o-Y) net profit (attributable to owners of the company) to Rs 3,395 crore for the second quarter of the current financial year (Q2FY25).
L&T expects domestic orders to pick momentum for the remainder of FY25 after moderating in the first two quarters. Its Q2 earnings were helped by better execution, however, offset by a one-time income recorded for the comparative quarter a year ago.
New orders won in the quarter under review for the company declined 10 per cent Y-o-Y to Rs 80,045 crore. L&T management noted, the moderation in domestic orders was anticipated and they expect a pick-up going ahead.
Net sales for the quarter under review rose 20 per cent Y-o-Y to Rs 61,555 crore. The company said international revenues during the quarter at Rs 32,057 crore constituted 52 per cent of the total revenues.
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L&T in its statement said, Q2 in the previous year had the benefit of a non-recurring gain of Rs 512 crore from Transit Oriented Development (TOD) monetization in the Hyderabad Metro concession.
Sequentially, L&T’s profit jumped 21.9 per cent and net sales rose 11.7 per cent.
The company beat Street estimates as in a Bloomberg poll, 16 analysts estimated a revenue of Rs 57,621 crore and 11 analysts estimated a net income adjusted of Rs 3205 crore.
Ebitda for the quarter, the company said, was at Rs 6,362 crore, up 13 per cent from a year ago.
“India’s growth story remains intact on the back of continued public capex spends and a visible recovery in private investments. We expect West Asia's capex momentum to remain healthy. The company remains committed on delivering a sustained performance of growth,” said SN Subrahmanyan, chairman and managing director L&T.
L&T maintained its earlier stated guidance for FY25 of a 15 per cent growth in revenue, 10 per cent growth in order inflow from a year ago, and core margins to remain at 8.25 per cent.
R Shankar Raman, chief financial officer and whole-time director for the company, said the key aspects would be investment momentum, military de-escalation both in Europe and West Asia, resource availability, and geopolitical tensions, “regardless of whether the order growth is domestic or international.”
Outstanding order book as of September, 2024, the company said was at all-time high of Rs 5.1 trillion, of which 40 per cent is from the international market.
“A new government policy offering employment-linked incentives to the workforce and corporates could improve the availability of skilled/trained labour,” said L&T in its press statement.
In a separate announcement on Wednesday, the company also said it won new orders in the range of Rs 5000-10,000 crore from West Asia and Africa in the power transmission and distribution segment.
Firm receives major orders from West Asia and Africa
Larsen & Toubro said it won new orders in the range of Rs 5,000-10,000 crore from West Asia and Africa in the power transmission and distribution segment. L&T also confirmed it remains optimistic to win two of three orders bundled for a 6.6 gigawatt (GW) combined thermal power capacity project. BS reporter