Q2 2025 Larsen and Toubro Ltd Earnings Call Transcript
Key Points
- Larsen & Toubro Ltd (LTOUF) reported a robust 21% year-on-year growth in group revenues for Q2 FY25, driven by strong execution momentum across multiple business segments.
- The company achieved a significant milestone with its order book reaching INR 5 trillion, reflecting a 13% sequential growth in group order inflows.
- The infrastructure segment secured orders worth INR 495 billion for Q2 FY25, marking a substantial 77% year-on-year growth.
- Larsen & Toubro Ltd (LTOUF) has successfully carved out a separate business vertical for renewable energy, positioning itself to capitalize on growth opportunities in the renewables sector.
- The company's net working capital to revenue ratio improved significantly to 12.2% as of September 2024, indicating better financial management and strong customer collections.
- The group order inflows for Q2 FY25 experienced a year-on-year decline of 10%, primarily due to a high base effect from the previous year's international ultra mega orders in the hydrocarbon business.
- The EBITDA margin at the group level decreased to 10.3% in Q2 FY25 from 11% in the same quarter of the previous year, partly due to a nonrecurring monetization gain in Hyderabad Metro in the previous year.
- The energy segment's margin declined to 8.8% in Q2 FY25 from 9.5% in the previous year, reflecting the stage of execution for various jobs.
- The precision engineering and systems business faced challenges with additional cost provisions impacting margins in the heavy engineering segment.
- The Hyderabad Metro reported a PAT loss of INR 2.07 billion in Q2 FY25, attributed to interest on loans and despite improved ridership.
Ladies and gentlemen, good day, and welcome to the Larsen & Toubro Limited Q2 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
Today, we have with us on the call Mr. Subramanian Sarma, Whole Time Director and President of Energy Division; and Mr. P. Ramakrishnan, Head, Investor Relations of Larsen & Toubro Limited.
I now hand the conference over to Mr. P. Ramakrishnan. Thank you, and over to you, sir.
Thank you, Sagar. Good evening, ladies and gentlemen. A very warm welcome to all of you into the Q2 FY25 earnings call of Larsen & Toubro. The presentation -- the earnings presentation was uploaded on the stock exchange and on our website around 6:35 PM just now, maybe one hour back.
I hope you have had a chance to have a quick look at the numbers.
As per past practice, instead of going through the entire presentation, I will take you through the important highlights for the quarter
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
