L&T’s Financial Performance Review for FY 2024–25: Strong Growth, Record Orders, and Strategic Investments

Larsen & Toubro (L&T) delivered a strong financial performance in the fiscal year 2024–25, driven by robust execution across its diverse business verticals. The company reported consolidated revenues of approximately ₹2,55,734 crore, marking a 16 percent increase over the previous fiscal year. This growth was supported by improved activity in infrastructure projects, manufacturing, and international engineering contracts. The company saw steady progress in project delivery timelines, aided by improved supply chain efficiencies and adoption of digital tools for construction monitoring. With a strong mix of domestic and international projects in execution, the company’s revenues reflected sustained demand in core sectors.

The profit after tax for the year stood at ₹15,037 crore, representing a 15 percent year-on-year growth. This includes a one-time exceptional gain of ₹475 crore from the reversal of impairments recognized in earlier years. Earnings growth was supported by better operating margins across key verticals, especially in hydrocarbon engineering and power transmission. The company’s cost rationalization initiatives and increased adoption of modular construction techniques contributed to the margin stability. Profitability also received a boost from improved revenue recognition in international projects that achieved key delivery milestones during the year.

L&T’s order inflow reached a historic high of ₹3,56,631 crore during the year, an 18 percent increase compared to the previous year. Around 58 percent of these orders were secured from international markets, including large contracts in the Middle East, Africa, and Southeast Asia. These included renewable energy EPC projects, high-speed rail systems, oil and gas infrastructure, and urban development programs. As of March 31, 2025, the consolidated order book stood at ₹5,79,137 crore, up by 22 percent over the previous year. This provides strong visibility for future revenue streams, with infrastructure and energy projects forming the bulk of the pipeline. The company’s ability to maintain a healthy order book underlines its competitiveness and credibility in global project execution.

Financially, the company maintained a stable debt profile and strong liquidity position. Net working capital improved slightly due to faster client clearances and improved billing cycles. The board of directors recommended a final dividend of ₹34 per share, reflecting healthy cash flows and consistent returns to shareholders. L&T also announced a ₹10,000 crore share buyback plan, showing confidence in its long-term financial stability. Investments were directed toward digitization, climate-smart construction practices, and technology modernization. These financial decisions are in line with L&T’s Lakshya 2026 strategic roadmap, which focuses on improving return on equity, expanding in overseas markets, and growing its high-margin technology services.

Sorces:Bloomsbergs