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### Larsen & Toubro (L&T) Financial & Operational Summary for Q2 FY25 & H1 FY25

Lesson 66/223 | Study Time: 5 Min

Course: Top Quality Companies

#### 1. **Order Inflow and Book**

- **Q2 FY25**: Order inflow reached ₹80,045 crore, a 10% YoY decrease due to a high base from the previous year's major international hydrocarbon orders.

- **H1 FY25**: The cumulative order inflow was ₹1,50,982 crore, with 55% being international. The total order book grew 7% from March 2024 to ₹5,10,402 crore, with 40% in international projects.

- **Segmental Order Inflow**: Infrastructure Projects led with ₹49,522 crore in Q2, reflecting a significant 77% YoY increase, while Energy Projects were lower at ₹7,759 crore due to the previous year’s higher base.

#### 2. **Revenue Growth**

- **Q2 FY25 Revenue**: Consolidated revenue increased by 21% YoY to ₹61,555 crore, driven by robust project execution.

- **H1 FY25 Revenue**: Total revenue for H1 FY25 was ₹1,16,674 crore, marking an 18% YoY increase.

- **Segmental Revenue**:

- **Infrastructure Projects**: ₹31,954 crore in Q2 (up 30% YoY).

- **Energy Projects**: ₹8,873 crore (up 31% YoY).

- **Hi-Tech Manufacturing**: ₹2,063 crore (up 9% YoY).

#### 3. **Profit Margins**

- **Q2 FY25 vs. Q2 FY24**:

- **EBITDA Margin**: Slightly lower at 10.3% in Q2 FY25 vs. 11.0% in Q2 FY24.

- **PAT**: ₹3,395 crore in Q2 FY25, showing a 5% YoY growth. Excluding last year’s non-recurring gain, PAT grew 25%.

- **Comparative Margins (Q2 FY24/Q1 FY25)**: Incremental PAT margins reflect stable execution despite lower EBITDA margin YoY.

#### 4. **Ratios & Solvency**

- **Leverage Ratios**: Debt-to-equity ratio stood at 1.17 in Q2 FY25.

- **Liquidity Ratios**: Current ratio was 1.17, indicating solid liquidity levels.

- **Profitability Ratios**:

- Operating margin was 10.3% for H1 FY25.

- Net profit margin: 6.7% in Q2 FY25.

#### 5. **Valuation at Current Price**

- **Current Price**: ₹3,407. Based on growth and profitability, L&T’s valuation reflects a steady investment in infrastructure and energy projects with a strong market position, especially internationally.

#### 6. **Industry Overview & Peer Analysis**

- **Industry**: L&T continues to benefit from India’s capital expenditure push and demand from the Middle East. Investments in green energy and technological advancements are positioning it favorably.

- **Peer Group**: Key competitors include BHEL, Siemens, and Tata Projects in engineering and infrastructure sectors.

#### 7. **Outlook**

- **Near-Term**: Growth driven by the government’s CapEx plan and international hydrocarbon projects, with L&T likely to benefit from Middle East investments in energy.

- **Long-Term**: L&T’s investments in green energy and high-tech manufacturing, combined with India’s infrastructure development, are projected to sustain growth.

#### 7. **Disclaimer**

- We are not tip providers, The document was prepared with the objective of educational purposes.

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