L&T Q1 Results FY25: Strong growth driven by infra projects and order wins | By puneripages.in
By Prashant for PuneriPages.in
Larsen & Toubro (L&T) has kicked off the new financial year on a strong note. If you ever wanted a peek into how India’s economy is moving, L&T’s numbers are a great place to start—and Q1 FY25 tells quite the story.
Table of Contents
📈 Quick Highlights
- Net Profit: ₹3,617 crore (up 30% YoY) — better than expected!
- Revenue: ₹44,946 crore (up 16% YoY) — in line with estimates.
- EBITDA Margin: 11.3% — slightly below expectations due to cost pressures.
- Order Inflow: ₹73,000 crore (up 39% YoY) — a big win!
Bottom line: A strong quarter overall. Slight margin pressure? Yes. But a booming order book shows confidence in L&T’s future.
📊 What Boosted Profit?
The 30% rise in profit wasn’t just about more revenue. L&T saw good execution across its ongoing infra projects. This means they managed to finish work faster and bill clients quicker—always a good sign. Also, managing costs at the ground level helped boost the bottom line.
🚀 Order Inflow: The Star of the Show
The order book is where things get exciting. L&T bagged fresh orders worth a massive ₹73,000 crore in Q1. That’s 39% more than the same time last year.
These orders came from:
- Indian infra projects (metros, highways, smart cities)
- Middle East energy projects (especially in hydrocarbons & renewables)
This clearly shows both governments and private companies are spending big again. That’s a green flag for India’s investment cycle.
⚡ Margins: One Area to Watch
Margins came in slightly below expectations at 11.3%. Nothing alarming, but something to keep an eye on. Raw material and labor costs have been rising, so if those continue going up, L&T will have to balance growth with profitability.
🌎 Segment Snapshot
1. Infrastructure: Still L&T’s biggest driver. National infra programs (like Bharatmala, urban rail) are fueling growth.
2. Energy: Strong showing, thanks to new global orders, especially in the Gulf.
3. Hi-Tech Manufacturing: Steady growth. Defense, aerospace, and precision engineering are gaining traction.
4. IT Services (LTIMindtree & LTTS): Stable contributions, though tech spending is still cautious globally.
📊 What the Company is Saying
L&T hasn’t changed its full-year outlook. Management is expecting:
- Mid-teens revenue growth
- Continued strong order wins in infra, green energy, and defense
But they’re also staying alert about global risks (like Middle East tension) and rising input costs.
📉 Investor Insight
L&T’s stock didn’t move much post-results—probably because the market had already priced in the strong performance. Still, if you’re thinking long-term, L&T looks like a solid bet on India’s growth story.
📅 Final Thoughts
L&T has once again shown why it’s considered India’s infrastructure backbone. Yes, there are some cost-related headwinds, but with a massive order book and strong project execution, the outlook stays bright.
If you believe in India’s infra push, L&T is definitely one stock to keep on your radar.
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