L&T (Larsen & Toubro), a construction major, on Wednesday reported an increase of 10.2 per cent in consolidated net profit at Rs 4,396 crore in the March quarter. The company’s last year consolidated profit for the same period was Rs 3,987 crore.
The consolidated Profit after tax of the company for the year ended March 21, 2024, was posted as Rs 13,059 crore, showing a growth of 25 per cent as compared to last year.
Overall, as compared to last year, the net profit margin has dropped to 6.83 per cent from 7.03 per cent. The operating margin has also increased from 10.63 per cent to 11.32 per cent.
The overall income of the company has also increased by 15 per cent in the March quarter to Rs 67,079 crore from Rs 58,335 crore in the same period last year.
“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.
The EBITDA increased by 6 per cent to Rs 7,235 crore in this quarter and increased by 13 per cent yearly as compared to last year.
L&T segment earnings, Dividend
The infrastructure projects segment of the company earned the highest revenue in the March quarter of Rs 38,035 crore. Followed by Energy Projects and Hi-Tech Manufacturing at Rs 8,205 crore and Rs 2,462 crore.
The Board has declared a special dividend of Rs 6 per equity share for the year. A dividend of Rs 28 has also been recommended for the financial year.
“Furthermore, in addition to the special dividend of ₹ 6 per share paid to our equity shareholders during the year, we are recommending a final dividend of ₹ 28 per share for the financial year 2023-24.”
Mr R Shankar Raman elevated President
L&T announced that Mr R Shankar Raman, who has been Sr EVP, Whole-time Director & CFO, is elevated to President, Whole-time Director & CFO with immediate effect.
He is a qualified chartered accountant and a Cost accountant. He has a deep understanding of the intricacies of corporate finance, mergers and acquisitions, capital management and risk assessment.
Mr Raman said: “I am deeply honoured to accept the appointment as President. I would like to express my sincere gratitude to L&T Board & our CMD for having placed their trust in me to lead in this capacity and work together towards our shared goals and aspirations.”
L&T’s recent major projects
L&T has completed the Atal Setu and the Coastal Road project in Mumbai. The construction of the Ram Mandir was also done by Larsen and Toubro, which was consecrated on January 22, 2024.
“This faith posed by our customers on our capabilities to complete iconic and complex engineering projects in a time-bound manner with highest standards of quality and safety continues.”
The company has also invested in several new-age businesses such as Green Energy, Semiconductor chip manufacturing, Digital Platforms and Data centres which are expected to grow and compliment the grow of their traditional business.
‘Factors difficult for us to take a call’
The Shares of L&T fell up to 6 per cent to the day’s low at Rs 3,290 as brokerages reduced their target prices.
Though the net profit grew, L&T reduced its future margin to 8.2-8.3 per cent, Motilal reduced the target price to Rs 4,000, while Kotak gave a sell call with a target price of Rs 3,000.
“We continue to build in a low single-digit growth in overall ordering, as 10% order growth guidance relies on factors difficult for us to take a call on strong resurgence in domestic ordering, after a muted 1H and L&T gaining a share on government bids, incorporating a quality-based cost assessment,” Kotak Equities said.
