Latest news with #Subrahmanyan

Business Standard

L&T Q4 net profit jumps 25% to Rs 5,497 crore, beats Street estimates

Engineering and construction major Larsen & Toubro (L&T) reported a 25 per cent rise in its consolidated net profit attributable to shareholders for the January–March quarter (Q4FY25), supported by higher revenues and an exceptional item. The company posted a net profit of Rs 5,497.3 crore, while revenue rose 10.9 per cent year-on-year (YoY) to Rs 74,392.28 crore. Order inflow for the quarter ended 31 March 2025 stood at Rs 89,613 crore, up 24 per cent YoY. Of this, international orders accounted for Rs 62,739 crore, comprising 70 per cent of the total, the company said. For the full financial year FY25, L&T reported a net profit of Rs 15,037 crore, up 15.1 per cent YoY. Revenue rose 15.7 per cent YoY to Rs 2,55,734 crore, driven by a robust order book and increased execution across its Projects & Manufacturing (P&M) businesses. The board recommended a final dividend of Rs 34 per equity share. While quarterly revenue missed analyst expectations—17 analysts polled by Bloomberg had projected Rs 76,298.1 crore—the net profit exceeded the consensus estimate of Rs 4,545.3 crore from 11 analysts. 'We achieved the highest-ever yearly order inflows in the company's history, which buoys our order book to a record level. Similarly, the strong revenue growth underpins our journey towards achieving operational excellence through innovation and digitalisation,' said S N Subrahmanyan, chairman and managing director, L&T. As of 31 March 2025, L&T's consolidated order book stood at Rs 5,79,137 crore, up 22 per cent YoY, with international orders accounting for 46 per cent of the total. The company secured fresh orders worth Rs 3,56,631 crore during FY25. Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4 stood at Rs 8,203 crore, up 13 per cent YoY, while EBITDA margin remained stable at 11 per cent. Expenses for the quarter rose 10 per cent to Rs 67,988.09 crore. 'During the year, the company has made strategic investments to strengthen its new-age businesses in semiconductor technologies and data centres. Growth in our traditional core business, combined with a focus on technology-driven new-age segments, will steer the company towards a diversified and future-ready portfolio,' Subrahmanyan said. In Q4, the infrastructure projects segment secured orders worth Rs 34,580 crore, up 10 per cent YoY. Energy projects recorded order inflows of Rs 32,201 crore, more than doubling from the previous year. The company's FY25 profit includes an exceptional gain of Rs 475 crore (net of tax) arising from the partial reversal of a previously recorded impairment provision related to its funded exposure in the erstwhile L&T Special Steels and Heavy Forgings joint venture. 'Despite turbulent global geopolitical dynamics, the Indian economic landscape continues to demonstrate resilience and stable growth. Driven by ongoing public infrastructure investments and a revival in private investments in areas like energy transition, data centres and real estate, India's economic growth is expected to continue,' Subrahmanyan said. He added that the government's prudent fiscal management, supported by the Reserve Bank of India's accommodative monetary stance to anchor inflation within an acceptable range, is expected to boost the momentum and quality of growth. However, L&T noted that global risks—such as US-led tariff measures, volatile crude prices and disrupted supply chains—pose uncertainty for cross-border trade and investment. Policy unpredictability and geopolitical tensions continue to cloud the macroeconomic outlook. In this environment, L&T said it will focus on the timely execution of its large order book, liquidity preservation and optimal use of capital and other resources, while remaining cautiously optimistic about emerging opportunities. The company also said the Gulf Cooperation Council's (GCC) transition from oil to clean energy and its industrialisation push offer attractive growth potential. Shares of L&T closed flat at Rs 3,320.60 on the BSE, while the benchmark BSE Sensex declined 0.51 per cent to 80,334.81 points.