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L&T reports 25% increase in PAT with strong order inflow and optimistic outlook for FY26

#Taxation & Finance News#India
Last Updated : 14th May, 2025
Synopsis

Larsen & Toubro (L&T) reported a 25% year-on-year increase in its consolidated profit after tax (PAT) for the quarter ending March 31, 2025, reaching INR 5,497 crore. This surge was driven by higher revenues and an exceptional gain. The company's revenue from operations also saw an increase to INR 74,392.28 crore. For the full year, L&T posted a consolidated PAT of INR 15,037 crore, reflecting a 15% growth. Its order inflows for the year were record-breaking at INR 3.56 trillion, with international orders comprising 58% of the total. Despite global challenges, L&T remains optimistic about growth prospects for FY26, forecasting a 10% rise in order inflows.

Infrastructure giant Larsen & Toubro (L&T) announced a remarkable 25% increase in its consolidated profit after tax (PAT) to INR 5,497 crore for the quarter ending March 31, 2025, driven by higher revenues and an exceptional gain. The company's PAT for the same period last year was INR 4,396 crore. Revenue from operations for the quarter surged to INR 74,392.28 crore, up from INR 67,078.68 crore in the previous year.


R Shankar Raman, L&T's President, Whole-time Director, and Chief Financial Officer, shared that FY'25 had been an exceptional year for the company, with L&T surpassing most of its financial targets. Raman noted that this achievement was particularly significant given the tough operating environment.

For the fiscal year ending March 31, 2025, L&T posted a consolidated PAT of INR 15,037 crore, a 15% increase compared to the prior year. This PAT includes an exceptional gain of INR 475 crore (net of tax) from the partial reversal of an earlier impairment provision for resources funded in the joint venture L&T Special Steels and Heavy Forgings Private Limited (LTSSHF).

L&T's order inflow also reached a record INR 3.56 trillion for FY'25, representing an 18% growth from the previous year. International orders accounted for 58% of the total order inflows, amounting to INR 2,07,478 crore. Raman proudly stated that the company had achieved the highest-ever order inflow in its history.

Looking ahead to FY26, L&T remains optimistic, with encouraging prospects for order inflow. Raman indicated that the company is eyeing a domestic pipeline of INR 7 lakh crore and an international pipeline of INR 12 lakh crore, signalling a 10% growth in order inflows for the upcoming year. This compares to last year's projections, where the domestic pipeline was similarly robust, but international prospects were lower at INR 7 lakh crore.

Chairman and Managing Director S N Subrahmanyan reflected on the company's success, attributing the strong revenue growth and record order inflows to operational excellence through innovation and digitalisation.

The company's board also recommended a final dividend of INR 34 per equity share for FY 2024-25.

Despite this optimistic outlook, L&T acknowledged the potential risks posed by global economic factors. The recent US-led tariff announcements and the possibility of slower global trade could impact costs and productivity. Additionally, fluctuations in crude oil prices and disrupted supply chains may present challenges. The company's outlook remains cautious, given geopolitical tensions and military escalations that could create further uncertainties.

In response, L&T plans to focus on efficiently executing its substantial order book, preserving liquidity, and optimising resources while continuing to seek new opportunities. The company is committed to enhancing returns for its shareholders over the long term.

Larsen & Toubro, a USD 27 billion multinational enterprise, operates in diverse sectors, including EPC projects, high-tech manufacturing, and services, across various global markets.

Despite this, L&T's strategic focus on managing its large order book and optimising resources positions it well to navigate these challenges and maintain growth. The company's commitment to innovation and digitalisation will be key in achieving its goals for the coming year.

Source - PTI

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