Larsen & Toubro Ltd. (L&T) reported consolidated first-quarter net profit grew 46% to ₹2,493 crore year-on-year owing to better all-round performance and balance sheet management.
Revenue for the quarter increased 34% to ₹ 47,882 crore. International revenue during the quarter at ₹19,022 crore constituted 40% of the total revenue.
Share buyback
The company’s board on Tuesday approved a buyback of shares worth ₹10,000 crore for a maximum price of ₹3,000 per share and announced a special dividend of ₹6 per share to reward investors. It will be the company’s first buyback of shares if the process goes through smoothly.
“We closed the quarter with an all-round performance. Capex buoyancy in India & GCC (Gulf Cooperation Council) is providing the much-needed tailwinds for growing our “Projects & Manufacturing” portfolio, ably supported by the resilient performance of the “Services” businesses,” said S. N. Subrahmanyan, CEO & MD, L&T in a statement.
“The Q1FY24 performance is on the back of robust topline and bottom-line growth, supported by excellent balance sheet management, resulting in improved return ratios. We are walking the talk by returning surplus cash to shareholders in our journey to improve the Group return ratios over the Lakshya Strategic Plan period ending FY26,” he said.
“The group’s focus continues to be on cash generation, planned capital allocation and on enhancing shareholder’s wealth.” he added.
During the quarter, the company received orders worth ₹65,520 crore at the group level, up 57% Year on Year (YoY). Orders were received across segments like Rail, Renewables, Rural Water Supply, Transmission & Distribution, IT & Office Space and Onshore & Offshore verticals of the Hydrocarbon business. International orders at ₹ 27,646 crore comprised 42% of the total order inflow.
The consolidated order book of the group is at ₹4,12,648 crore, with international orders having a share of 29%.
The Infrastructure Projects segment secured order inflow of ₹40,051 crore, up more than 100% YoY. International orders at ₹13,872 crore constituted 35% of the total order inflow of the segment. The segment order book stood at ₹301,159 crore, with the share of international orders at 24%.
The segment posted customer revenues of ₹22,058 crore, up 56% YoY led by improved execution momentum. The EBITDA margin of the segment was at 5.1% vis-à-vis 6.5% recorded a year ago.
The company’s Energy Projects segment secured orders valued at ₹7,245 crore , up 66% YoY. The segment achieved customer revenues of ₹ 6,682 crore, up 32% YoY. The EBITDA margin of the segment at 9.1% improved compared with 8.5% in the year ago period.
The Hi-Tech Manufacturing segment secured orders valued at ₹1,051 crore registering a decline of 70%. The segment posted customer revenues of ₹1,781 crore, up 40% YoY. The EBITDA margin at 16.8% registered growth, compared with 15.1% a year ago.
The IT & Technology Services (IT&TS) Segment recorded customer revenues of ₹ 10,851 crore, up 14% YoY. The aggregate revenue of the two listed subsidiaries (LTIMindtree and L&T Technology Services Ltd ) at $1,339 million registered YoY growth of 8% in Dollar terms. The EBITDA margin for the segment was at 20.6% as compared with 21.9% a year ago.
The Financial Services Segment recorded income of ₹3,020 crore, up 2% YoY. The segment PBT increased to ₹ 714 crore as compared with ₹ 356 crore a year ago.
On the outlook, R. Shankar Raman, CFO, L&T said, “The company will continue its planned trajectory of profitable and return accretive growth. Focus will remain on cash generation and judicious capital allocation.”
“The company has a robust order prospects pipeline in the medium term and is confident of sustaining its growth momentum by utilising the emerging opportunities, with an overarching aim of improving shareholder value on a sustainable basis,” he added.
For all the latest business News Click Here
