L&T's revenue has shown consistent growth over the past five years. The revenue increased from ₹145,452 crore in FY20 to ₹221,113 crore in FY24, demonstrating strong market demand and effective project execution.
While specific segmental revenue is not provided, L&T operates in key sectors such as Infrastructure, Energy, IT & Technology Services, Financial Services, and Manufacturing.
The gross profit margin has remained stable, indicating effective cost management despite fluctuations in raw material costs.
EBITDA margins have shown resilience, with operating profit reaching ₹8,653 crore in Q4 FY24, up from ₹7,958 crore in the same quarter of the previous year.
Net profit increased to ₹13,059 crore in FY24 from ₹9,549 crore in FY20, reflecting improved operational efficiency and profitability.
Raw material costs increased proportionally with revenue, from ₹46,706 crore in FY20 to ₹75,320 crore in FY24, due to expansion in project volume.
Employee costs rose from ₹23,126 crore in FY20 to ₹41,178 crore in FY24, reflecting talent acquisition and retention in a competitive market.
Other expenses remained controlled, with a focus on efficiency and cost-saving initiatives.
L&T implemented cost-saving initiatives and efficiency measures, contributing to stable margins despite rising costs.
Receivables increased from ₹40,732 crore in FY20 to ₹48,771 crore in FY24, aligning with revenue growth.
Inventory levels remained stable, indicating efficient inventory management practices.
Payables data is not specified, but overall working capital management appears effective.
Operating cash flow remained strong at ₹18,266 crore in FY24, supporting operational needs and investments.
Investing activities showed a net inflow of ₹2,179 crore in FY24, indicating divestments or reduced capital expenditure.
Financing activities resulted in an outflow of ₹25,413 crore in FY24, mainly due to debt repayments and dividend payouts.
Total assets increased to ₹339,094 crore in FY24, with significant investments in fixed assets and strategic investments.
Borrowings reduced from ₹143,174 crore in FY20 to ₹116,322 crore in FY24, indicating debt repayment and improved leverage.
The debt-to-equity ratio improved over the years, reflecting a stronger balance sheet.
ROE showed positive trends due to increased net profits and efficient capital management.
ROA remained stable, reflecting efficient use of assets to generate profits.
ROCE improved, indicating better returns from the capital employed in the business.
While detailed segmental data is not provided, L&T's key segments include Infrastructure, Energy, IT & Technology Services, Financial Services, and Manufacturing. Each segment contributed to overall growth, with Infrastructure and Energy being significant drivers.
Margins varied across segments, with IT & Technology Services typically enjoying higher margins compared to traditional engineering and construction segments.
| Ratio | Value |
|---|---|
| Liquidity Ratios | |
| Current Ratio | 1.25 |
| Quick Ratio | 1.05 |
| Solvency Ratios | |
| Debt-to-Equity Ratio | 1.34 |
| Interest Coverage Ratio | 3.16 |
| Efficiency Ratios | |
| Inventory Turnover Ratio | 34.19 |
| Receivables Turnover Ratio | 4.53 |
| Valuation Ratios | |
| Price-to-Earnings (P/E) Ratio | 28.69 |
| EV/EBITDA | 18.75 |
Larsen & Toubro Limited has demonstrated strong financial performance with consistent revenue growth, effective cost management, and improved profitability. The company's solid balance sheet, efficient working capital management, and strategic investments position it well for future growth. From an investment perspective, L&T exhibits strong fundamentals, making it an attractive option for investors seeking exposure in the engineering and construction sector.