Chandigarh, May 09, 2025
Larsen & Toubro won orders of ₹ 356,631 crore at the group level during the year ended March 31, 2025, registering a sizable y-o-y growth of 18%. During the year, orders were bagged across multiple geographies and various segments like Renewable, Transmission & Distribution, Airports, Commercial and Residential Buildings, Metros, Hydel & Tunnel, Minerals & Metals, Thermal BTG, Precision Engineering and Offshore & Onshore vertical of Hydrocarbon business. International orders at ₹ 207,478 crore during the year comprised 58% of the total order inflow.
The order inflow for the quarter ended March 31, 2025 stood at ₹ 89,613 crore, registering a strong growth of 24% y-o-y. International orders at ₹ 62,739 crore during the quarter constituted 70% of the total.
The consolidated order book of the group as on March 31, 2025, is at ₹ 579,137 crore registers a growth of 22% over March 2024, with the share of international orders at a healthy 46%.
The Company achieved Consolidated Revenues of ₹ 255,734 crore for the year ended March 31, 2025 registering a substantial y-o-y growth of 16% mainly on the back of large order book and ramp up in execution momentum across Projects & Manufacturing (P&M) businesses. International revenues during the year at ₹ 127,566 crore constituted 50% of the total revenues, reflecting improved execution in international P&M portfolio.
For the quarter ended March 31, 2025, the Consolidated Revenues at ₹ 74,392 crore recorded a y-o-y growth of 11%. The share of international revenues during the quarter was 49%.
The Company for the year ended March 31, 2025, posted a Consolidated Profit After Tax (PAT) of ₹ 15,037 crore, registering a growth of 15% compared to the previous year. The PAT includes an exceptional gain (net of tax) of ₹ 475 crore, attributable to the partial reversal of an earlier impairment provision for funded resources in the erstwhile L&T Special Steels and Heavy Forgings Private Limited (LTSSHF) joint venture.
Similarly, for the quarter ended March 31, 2025, Consolidated Profit After Tax at
₹ 5,497 crore, registered a robust growth of 25% on y-o-y basis.
The Board of Directors has recommended a final dividend of ₹ 34 per equity share, for the approval of shareholders.
Commenting on the results, S.N. Subrahmanyan, Chairman and Managing Director said:
“The year concluded on a high note, marking yet another period of outstanding performance. We achieved the highest ever yearly order inflows in 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 digitalization.
I am pleased to announce that the Board of Directors has recommended a final dividend of ₹ 34 per equity share for the financial year 2024-25.
During the year, the Company has made some strategic investments to strengthen its new age businesses of Semiconductor technologies and Data Centers. Growth in our traditional core business combined with focus on technology driven new age businesses will steer the Company towards its vision to diversify its portfolio and make itself future ready.
Despite the turbulent global geopolitical dynamics, the Indian economic landscape continues to demonstrate resilience and stable growth. Driven by continuing public infrastructure investments and a revival in private investments in areas like Energy Transition, Data Centers and Real Estate, India’s economic growth is expected to continue. Additionally, the government’s prudent fiscal policies and efforts to improve domestic demand complimented by RBI’s accomodative monetary policy management to anchor inflation within aceeptable range is expected to improve the momentum and quality of growth.
The Middle East continues its investments in traditional areas like Oil and Gas as well as basic infrastructure, besides earmarking funds for Energy Transition and non-oil industrialization.
We remain cautiously optimistic. Amid this backdrop, the Company will continue to look for opportunities which are aligned with its vision of pursuing profitable and return accretive growth.”
Business Highlights for FY 2024-25
- Order Inflow growth of 21% on large International wins
- Carved out a separate Renewable Energy vertical out of the Power Transmission & Distribution business
- Strong order wins for two consecutive years in Hydrocarbon business
- Hydrocarbon business carves into two business verticals, viz. Offshore and Onshore with effect from April 01, 2025
- Highest ever order inflow in CarbonLite Solutions business
- Land allocated in Gujarat for setting up plant for Green Hydrogen and its derivatives
- Acquired balance 26% stake in L&T Special Steels and Heavy Forgings Private Limited (LTSSHF) from NPCIL
- Launched two Multi-Purpose Vessels (MPV) ahead of schedule
- Signed Technology License Agreement (TLA) for 4MW Electrolyser stack
- L&T acquired 15% stake in E2E Networks Limited
- L&T Semiconductor Technologies Limited (LTSCT) completed the acquisition of 100% equity shares of SiliConch Systems Private Limited
- L&T Technology Services Limited (LTTS) acquired Silicon Valley- based Intelliswift
- Business completed 30 years of its operations in November 2024
- L&T Finance Limited (LTF) entered into an agreement with Paul Merchants Finance Pvt. Ltd.’s (PMFL) for acquiring its gold loan business segment
Segment-wise Performance Highlights
Infrastructure Projects Segment
The Infrastructure Projects segment secured order inflow of ₹ 173,226 crore, during the year ended March 31, 2025, registering a growth of 21% on y-o-y basis. International orders constituted 61% of the total order inflow of the segment during the year aided by receipt of major orders in Renewable, Power Tranmission & Distribution and Buildings & Factories businesses.
The segment secured orders of ₹ 34,580 crore, during the quarter ended March 31, 2025, registering growth of 10% over the corresponding quarter of the previous year. International orders constituted 55% of the total order inflow for the quarter.
The segment order book stood at ₹ 357,053 crore as on March 31, 2025, with the share of international orders at 39%.
For the year ended March 31, 2025, the customer revenues at ₹ 129,897 crore registered a y-o-y growth of 15%, attributable to the efficient execution of substantial order book. International revenues constituted 41% of the total customer revenues of the segment during the year.
The segment recorded customer revenues of ₹ 38,901 crore for the quarter ended March 31, 2025, registering a y-o-y growth of 2%. The subdued revenue growth is primarily due to faster execution in the previous quarters. International revenues constituted 42% of the total customer revenues of the segment during the quarter.
The EBITDA margin of the segment during the year ended March 31, 2025 was higher at 6.4% compared to 6.2% during the previous year. Margin for the year has improved due to execution cost savings.
Energy Projects Segment
The Energy Projects segment secured orders valued at ₹ 87,569 crore during the year ended March 31, 2025 registering a robust growth of 19% on y-o-y basis aided by receipt of orders in both CarbonLite Solutions and Hydrocarbon businesses respectively. International order inflow constituted 60% of the total order inflow during the year.
The segment secured orders of ₹ 32,201 crore, during the quarter ended March 31, 2025, registering a significant growth of more than 100% over the corresponding quarter of the previous year on receipt of the ultra-mega Qatar Energy order in Hydrocarbon business. International orders constituted 97% of the total order inflow for the quarter.
The segment order book was at ₹ 165,754 crore as on March 31, 2025, with the international order book constituting 73%.
For the year ended March 31, 2025, the customer revenues at ₹ 40,668 crore registered a healthy growth of 38% y-o-y on execution ramp up in international projects. International revenues constituted 66% of the total customer revenues of the segment during the year.
The segment achieved customer revenues of ₹ 12,249 crore during the quarter ended March 31, 2025, recording a strong growth of 49% y-o-y. International revenues had a share of 61% of the total customer revenues for the quarter.
The EBITDA margin of the segment was at 8.4% for the year ended March 31, 2025 lower compared to the previous year at 10.0% mainly due to early stage of execution of the new orders in the Hydrocarbon business.
Hi-Tech Manufacturing Segment
The segment secured orders valued at ₹ 18,282 crore during the year ended March 31, 2025 registering a growth of 28% over the previous year, with receipt of key orders in both the Precision Engineering & Systems and Heavy Engineering businesses respectively. Export orders constituted 21% of the total order inflow of the segment during the year.
The segment secured orders of ₹ 2,263 crore, during the quarter ended March 31, 2025, registering decline of 74% over the corresponding quarter of the previous year due to a high base. International orders constituted 35% of the total order inflow for the quarter.
The order book of the segment was at ₹ 40,388 crore as on March 31, 2025, with the share of export orders at 11%.
For the year ended March 31, 2025, the customer revenues at ₹ 9,695 crore registered a growth of 18% y-o-y, with better progress in jobs of the Precision Engineering & Systems business. International revenues constituted 21% of the total customer revenues of the segment during the year.
The segment posted customer revenues of ₹ 3,354 crore for the quarter ended March 31, 2025, registering a growth of 36% over the corresponding quarter of the previous year. Export sales comprised 23% of the total customer revenues for the quarter.
The EBITDA margin of the segment during the year ended March 31, 2025 was at 17.3% vis-à-vis 16.3% recorded in the previous year. Margin is higher mainly on account of improved job mix.
IT & Technology Services (IT&TS) Segment
The segment recorded customer revenues of ₹ 47,845 crore for the year ended March 31, 2025, registering a modest y-o-y growth of 8%, reflecting the subdued global macro environment impacting IT&TS spends across the developed world. International billing contributed 92% of the total customer revenues of the segment for the year ended March 31, 2025.
The segment recorded customer revenues of ₹ 12,481 crore for the quarter ended March 31, 2025, recording a y-o-y growth of 11%. International billing contributed 91% of the total customer revenues for the quarter.
The EBITDA margin for the segment was at 19.5% for the year ended March 31, 2025 lower compared to 20.4% in the previous year. The segment margin was impacted by lower operating leverage on the back of modest revenue growth.
Financial Services Segment
The segment recorded income from operations at ₹ 15,194 crore during the year ended March 31, 2025, registering y-o-y growth of 16% mainly attributed to scaling up of retail disbursements.
The segment recorded income from operations at ₹ 3,812 crore during the quarter ended March 31, 2025, registering y-o-y growth of 6%.
The total Loan Book as on March 2025 is at ₹ 97,762 crore grew by 14% as compared with March 2024 at ₹ 85,565 crore. The Retail loan book now constitutes 97% of the total loan book as on March 31, 2025.
The segment PBT for the year ended March 31, 2025 increased to ₹ 3,491 crore as compared
to ₹ 3,028 crore in the previous year due to an increase in retail loan book.
Development Projects Segment
The segment recorded customer revenues of ₹ 5,371 crore during the year ended March 31, 2025 registering decline of 4% on y-o-y basis. Previous year revenue was higher on monetisation of a large value commercial property in Hyderabad Metro.
For the quarter ended March 31, 2025, the customer revenues at ₹ 1,227 crore, recorded a decline of 2% y-o-y.
The segment EBIT for the year ended March 31, 2025 registered decline of 25% y-o-y basis to ₹ 757 crore compared to the previous year, due to change in revenue mix in Hyderabad Metro SPV.
“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 year ended March 31, 2025 at ₹ 7,065 crore registered decline of 7% y-o-y. The decline was largely in the Realty business due to the lower handover of residential units. Export sales constituted 12% of the total customer revenues of the segment during the year, largely attributable to exports of Industrial Valves.
The customer revenues of this segment during the quarter ended March 31, 2025 at
₹ 2,369 crore, has registered growth of 4% y-o-y. Export sales constituted 10% of the total customer revenues for the quarter.
During the year ended March 31, 2025, the segment EBITDA margin was higher at 29.2% as compared to the previous year at 21.2% mainly due to change in sales mix in Realty business.
Note:
The key parameters of the Group and Segment Performance for the quarter and year ended March 31, 2025, are shown in Annexure 1.
Segment composition is provided in Annexure 2.
Outlook
Despite global uncertainties, the Indian economy’s growth for FY 2024-25 is estimated between 6.25 to 6.50 per cent. The agriculture sector is expected to grow ~4 per cent, the industrial sector ~ 6 per cent and the services sector ~ 7 per cent. The growth momentum is evidenced through improvements in several high-frequency macroeconomic indicators. India’s headline inflation, as measured by the Consumer Price Index (CPI), has eased considerably during the year. The reduction in the repo rate by 50 bps as well as shift of stance from neutral to accommodative by the RBI could further aid the growth momentum.
The economy is expected to remain resilient, supported by robust consumption from households alongside the government’s continued focus on capital expenditure. Capacity utilisation in manufacturing remains high and balance sheets of banks and corporates remain healthy. The economy has also undergone rapid digitalization over the past decade, significantly enabling productivity. The service sector has increasingly shifted towards high- tech digital solutions, including e-commerce, fintech, cloud computing, and AI-driven services.
The risks to growth remain largely external – rising cross border tariffs, disrupted supply chains and continuing geopolitical stresses. The country will have to adapt to the rapidly evolving global landscape while harnessing its domestic strengths to drive growth in a sustainable manner. Given the right impetus and policy framework, the country has the heft to position itself as a major sourcing geography for goods and services in the near future and target to become the world’s 4th largest economy, ahead of its stated timeline.
The global economy grew by 2.7 per cent in CY 2024, with regional growth varying significantly. The GCC, led by Saudi Arabia, is poised to continue strengthening both the physical and digital infrastructure of the region, in addition to monetizing its oil and gas assets. As GCC countries embark on the transition from oil to clean energy and pursue various industrialization initiatives, the region’s growth opportunities remain attractive.
With the recent US led tariff announcements, the risk of global cross-border trade and investment flows slowing down is imminent and consequently impacting costs and lower productivity. Additionally, volatility in crude oil prices and dislocated supply chains will pose further challenges. The economic growth outlook remains uncertain and ambiguous with key
risks stemming from heightened policy uncertainty amidst geopolitical tensions and military escalation.
In this economic backdrop, the Company will focus on timely execution of its large order book, preservation of liquidity and optimum use of capital and other resources while remaining cautiously optimistic on the emerging new opportunities. The Company will pursue its stated objective of enhancing returns to its shareholders on a sustained basis.