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Q1 FY25 Results Larsen & Toubro (L&T):
### Growth in Order Book and Order Flow Segment-Wise
- **Infrastructure Projects Segment**:
- Order inflow: ₹40,053 crore (49% international orders)
- Order book: ₹324,879 crore (28% international orders)
- Customer revenues: ₹26,908 crore (22% y-o-y growth, 34% international revenues)
- EBITDA margin: 5.8%
- **Energy Projects Segment**:
- Order inflow: ₹8,792 crore (21% y-o-y growth, 22% international orders)
- Order book: ₹117,724 crore (76% international orders)
- Customer revenues: ₹8,495 crore (27% y-o-y growth, 68% international revenues)
- EBITDA margin: 8.7%
- **Hi-Tech Manufacturing Segment**:
- Order inflow: ₹3,677 crore (100%+ y-o-y growth, 8% export orders)
- Order book: ₹33,765 crore (7% export orders)
- Customer revenues: ₹1,845 crore (4% y-o-y growth, 23% international revenues)
- EBITDA margin: 17.4%
- **IT & Technology Services Segment**:
- Customer revenues: ₹11,505 crore (6% y-o-y growth, 92% international revenues)
- EBITDA margin: 20.0%
- **Financial Services Segment**:
- Income from operations: ₹3,664 crore (21% y-o-y growth)
- Loan book: ₹88,717 crore (4% growth from March 2024, 13% y-o-y growth, 95% retail loans)
- PBT: ₹922 crore (29% y-o-y growth)
- **Development Projects Segment**:
- Customer revenues: ₹1,327 crore (3% y-o-y growth)
### Sales and Profit Growth in %
- **Revenue from Operations**: ₹30,278.75 crore (12% y-o-y growth)
- **Profit Before Tax (PBT)**: ₹4,676.65 crore (7.9% y-o-y growth)
- **Net Profit**: ₹3,440.11 crore (10.4% y-o-y growth)
### Segmental Growth
- **Infrastructure**: 22% y-o-y revenue growth
- **Energy**: 27% y-o-y revenue growth
- **Hi-Tech Manufacturing**: 4% y-o-y revenue growth
- **IT & Technology Services**: 6% y-o-y revenue growth
- **Financial Services**: 21% y-o-y revenue growth
- **Development Projects**: 3% y-o-y revenue growth
### Profitability Ratios
- **Operating Margin**: 10.19%
- **Net Profit Margin**: 6.25%
### Solvency Ratios
- **Debt to Equity Ratio**: 1.12 (High due to Financial Service Subsidiary)
- **Debt Service Coverage Ratio (DSCR)**: 1.35
- **Interest Service Coverage Ratio (ISCR)**: 5.22 (Low due to Financial Service Subsidiary)
### Liquidity Ratios
- **Current Ratio**: 1.19
### Important Insights and Highlights
- Steady growth across all financial parameters despite geopolitical challenges.
- Significant orders received in multiple segments including offshore hydrocarbon, renewables, and precision engineering.
- Remarkable transformation in the Financial Services portfolio with a shift towards retail finance.
- Recognition for exceptional credit quality and ESG performance.
### About L&T
Larsen & Toubro (L&T) is an Indian multinational engaged in technology, engineering, construction, manufacturing, and financial services. It is one of the largest and most respected companies in India's private sector.
### Industry Outlook
- Strong outlook for infrastructure development, particularly in energy and hi-tech manufacturing.
- Continued momentum in the Middle East and increasing opportunities in sectors like nuclear power, health, and precision engineering.
### Peer Group of Companies
- **Infrastructure**: Reliance Infrastructure, Tata Projects, GMR Infrastructure
- **IT & Technology Services**: TCS, Infosys, Wipro
- **Financial Services**: HDFC, ICICI, Bajaj Finance
- **Development Projects**: Adani Group, Essar Projects
### Future Outlook
- L&T is well-positioned to leverage opportunities in both traditional and new-age businesses.
- The company is expected to benefit from ongoing economic tailwinds in India and policy support.
- Targeting significant growth by 2026 (Lakshya 26 targets).
This analysis provides a comprehensive overview of L&T's Q1 FY25 results and future outlook. If you need further detailed analysis on any specific segment or financial metric, please let me know.
### Disclosure
This document should not be treated as a recommendation, this was created for educational purposes.
