Larsen & Toubro's Q2 FY25 Net Profit Declines by 5.45% YoY, Sales Show Growth

Net Profit – Quarterly: At Rs 2,906.66 cr has Declined at -5.45 % Year on Year (YoY).The company’s profitability has decreased in the last quarter.

Despite a flat financial performance in the second quarter of FY24-25, Larsen & Toubro, a leading capital goods company, has been able to maintain a strong position in the market. The company’s financial results for the quarter ending September 2024 have been declared on October 30, 2024.

According to MarketsMOJO, a leading stock analysis platform, the stock call for Larsen & Toubro is ‘Sell’. However, the company has shown some positive trends in its financials for the quarter. The Debtors Turnover Ratio, which measures how quickly a company collects payments from its customers, has been consistently improving over the last five half-yearly periods. This indicates that Larsen & Toubro has been able to settle its debtors faster.

The company’s Net Sales for the quarter have also shown a growth of 20.64% year on year, indicating a positive sales trend in the near term. However, there are some areas of concern for the company. The Operating Cash Flow for the last three years has been the lowest at Rs 18,266.28 crore, indicating a decrease in cash revenues from business operations. Additionally, the Net Profit for the quarter has declined by -5.45% year on year, showing a decrease in profitability.

Despite these challenges, Larsen & Toubro remains a strong player in the capital goods industry, with a largecap size. The company’s financial performance will continue to be closely monitored by investors and analysts in the coming quarters.