L&T Q4 Results: Net profit rises 10.3% to ₹4,396 crore, dividend declared; 5 key highlights

L&T Q4 Results: Larsen & Toubro (L&T) announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Wednesday, May 8, reporting a rise of 10.3 per cent in net profit at ₹4,396 crore, compared to ₹3,987 crore in the corresponding period last year. The multinational infrastructure conglomerate's revenue from operations in the fourth quarter of FY24 rose 15 per cent to ₹67,078.7 crore, compared to ₹58,335 crore reported in the year-ago period.

“The year has concluded on a very strong note for us. We have secured order inflows of more than ₹3 lakh crore and order book is around ₹4.75 lakh crore reflecting the continued trust reposed on us by all our esteemed clients. During the year, we successfully completed the maiden buyback of equity shares, in line with our aim to improve shareholder value,'' said S.N. Subrahmanyan, Chairman and Managing Director, L&T.

Also Read: How L&T is engineering an AI-driven conglomerate

Here are 5 key highlights of L&T Q4 scorecard:

1.P&L Account: Income, expenses

On the operating front, the engineering and construction major's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the March quarter rose six per cent to ₹7,234 crore, compared to ₹6,833 crore in the corresponding period last year. Margin dropped 90 basis points (bps) to 10.9 per cent compared to 11.7 per cent in the year-ago period.

2.Dividend

The company's board recommended a final dividend of ₹28 per equity share for fiscal 2023-24 (FY24), in addition to the special dividend of ₹6 per share which was paid in August 2023. The company has fixed Thursday, June 20, 2024 as the record date for determining the entitlement of members for the proposed final dividend.

‘’The board of directors has recommended a final dividend of Rs. 28 per share of the face value Rs. 2 each (in addition to the special dividend of Rs. 6 per share paid in August 2023) for the financial year ended March 31, 2024 (previous year final dividend Rs. 24 per share). The company will arrange to pay the proposed final dividend after approval of the shareholders in the ensuing Annual General Meeting (AGM),'' said L&T in a regulatory filing to the stock exchanges.

Also Read: L&T Q4 net improves 6% even as margins narrow

3.Order Book

The order inflow for the quarter ended March 31, 2024 stood at ₹72,150 crore, registering a marginal de-growth of five per cent over the corresponding quarter of the previous year. Domestic order inflow grew by 17 per cent as compared to the corresponding quarter of the previous year. The international orders at ₹25,217 crore constituted 35 per cent of the total.

The consolidated order book of the group as on March 31, 2024, is at ₹475,809 crore registers growth of 20 per cent over the previous year, with the share of international orders at 38 per cent. The company received orders worth ₹302,812 crore at the group level during FY24 registering a growth of 31 per cent.

4.Segment growth

During the year, the orders were received across multiple segments like onshore and offshore verticals in hydrocarbon, metros, urban transit systems, airports, roads and bridges, residential, renewables, transmission and distribution and the precision engineering sectors, said L&T in its exchange filing.

L&T's international orders at ₹1,63,112 crore during the year comprised 54 per cent of the total order inflow with higher ordering momentum from the Gulf Cooperation Council (GCC) countries. The infrastructure projects segment secured an order inflow of ₹1,42,589 crore in FY24, registering a growth of 22 per cent year on year (YoY).

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The energy projects segment secured orders worth ₹73,788 crore during the year ended March 2024, registering a growth of more than 100 per cent. Hi-tech manufacturing secured orders of ₹8,790 crore, during FY24 registering a growth of three per cent over the corresponding quarter of the previous year.

International orders constituted 14 per cent of the total order inflow for the quarter. The order book of the segment was at ₹31,975 crore as on March 31, 2024, with the share of export orders at eight per cent, according to L&T.

5.FY25 Outlook

Speaking during the conference call, Chief Financial Officer Shankar Raman said the company is looking at FY25 with optimism and will continue to invest in skill upgradation. On the company's plan for divestment in FY25, he said “the big ones we have divested. The plans for FY25 would be largely around restructuring Hyderabad Metro." He further said, “Ram Mandir, we hope to complete by March 2025."

On the outlook, L&T that India's growth momentum is likely to continue in the medium term backed by the sustained strength in domestic demand, easing of inflationary pressures, focussed fiscal spending by the government and a strong manufacturing revival through new age greenfield investments and brownfield expansion across sectors. Ahead of the announcement of Q4FY24 results, shares of L&T settled 1.53 per cent higher at ₹3,485.20 apiece on the BSE.

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