Larsen & Toubro (L&T) on Wednesday recorded its fiscal first quarter profit at Rs 2785.72 crore, up 11.7 per cent as compared to Rs 2493.00 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 55,119.82 crore, up 15.1 per cent as against Rs 47,882.37 crore posted during the first quarter of previous financial year, with robust execution witnessed in the Projects & Manufacturing (P&M) portfolio on the back of a large order book. International revenues during the quarter stood at Rs 26,248 crore and it constituted 48 per cent of the total revenues. The company EBITDA stood at Rs 5615.3 crore.
L&T’s order book
During the first quarter of FY25, L&T received orders worth Rs 70,936 crore at the group level, registering a YoY growth of 8 per cent aided by the strong ordering momentum in the Middle East. During the quarter, orders were received across multiple segments like Offshore vertical of Hydrocarbon business, Renewables, Transmission & Distribution, Roads, Nuclear Power, Hydel & Tunnel, Ferrous Metals, Health, and the Precision Engineering sectors, the company said in a regulatory filing.
Meanwhile, international orders stood at Rs 32,598 crore during the quarter and it comprised 46 per cent of the total order inflow. The consolidated order book of the group as on June 30, 2024, came in at Rs 490,881 crore.
SN Subrahmanyan, Chairman and Managing Director, L&T, said, “We have achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe. Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology driven new-age businesses. The Financial Services portfolio has achieved a remarkable transformation into Retail Finance with improved profitability. To enhance our presence in the Semiconductor sector, we have recently entered into a share purchase agreement with SiliConch Systems, a Bengaluru based chip design company.”
L&T’s Q1 performance across segments
Infrastructure Projects Segment
During the quarter, the segment secured order inflow of Rs 40,053 crore, wherein the international orders constituted 49 per cent of the total order inflow. The segment order book stood at Rs 324,879 crore as on June 30, 2024, with the share of international orders at 28 per cent. The customer revenues were at Rs 26,908 crore during Q1, up 22 per cent YoY, aided by improved execution momentum witnessed across various project sites.
Energy Projects Segment
During Q1FY25, the segment secured orders valued at Rs 8,792 crore, up 21 per cent YoY with receipt of high value orders in the domestic offshore vertical of Hydrocarbon business. International order inflow constituted 22 per cent of the total order inflow during the quarter. The segment Q1 order book stood at Rs 117,724 crore, with the international order book constituting 76 per cent. The customer revenues came in at Rs 8,495 crore, up 27 per cent YoY, mainly due to execution ramp up in international projects in the Hydrocarbon business.
Hi-Tech Manufacturing Segment
The segment secured orders valued at Rs 3,677 crore during Q1FY25, up >100 per cent YoY, with receipt of a high value order in the Precision Engineering & Systems business. Export orders constituted 8 per cent of the total order inflow of the segment during the quarter. The Q1 order book of the segment was at Rs 33,765 crore, with the share of export orders at 7 per cent. The customer revenues, meanwhile, was at Rs 1,845 crore, up 4 per cent YoY, with improved execution in Precision Engineering & Systems business.
IT & Technology Services (IT&TS) Segment
The segment recorded customer revenues of Rs 11,505 crore for Q1FY25, up 6 per cent YoY, reflective of subdued global macro outlook impacting discretionary IT&TS spends. International billing contributed 92 per cent of the total customer revenues of the segment.
Financial Services Segment
During the quarter in review, the segment recorded income from operations at Rs 3,664 crore, up 21 per cent YoY mainly attributable to higher disbursements in the retail business. The total loan book stood at Rs 88,717 crore, up 13 per cent YoY. The retail loan book now constitutes 95 per cent of the total loan book as on June 30, 2024.
Development Projects Segment
The segment recorded customer revenues of Rs 1,327 crore during the quarter ended June 30, 2024, up 3 per cent YoY. The segment EBIT for the quarter increased by 20 per cent to Rs 147 crore.
Others Segment
Others segment comprises (a) Realty (b) Industrial Valves (c) Construction Equipment & Mining Machinery and (d) Rubber Processing Machinery. Customer revenues of the segment during the quarter came in at Rs 1,375 crore, down 37 per cent YoY, primarily due to lower handover of residential units in the Realty business. Export sales constituted 17 per cent of the total customer revenues of the segment during the quarter, majorly relating to Industrial Valves business.