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

Revenue for the 4th grew 15% to ₹67,079 crore. Earnings earlier interest, tax, depreciation and amortization (Ebitda) was 6% higher astatine ₹7,234 crore. Ebitda margin, however, narrowed by astir a percent constituent to 10.8%, acknowledgment to outgo ostentation and higher superior expenditure.

Despite bid inflows thinning by 5% successful the past 4th up of wide elections, for FY24 arsenic a whole, the institution recorded a 31% maturation successful bid inflows to transverse ₹3 trillion.

“Normally, Q4 sees the astir bid inflows, astir 40% of the yearly orders. But we knew determination were elections this year, truthful we pushed hard successful the archetypal 3 quarters and got 75% of the orders that we were expecting during the year," R. Shankar Raman, main fiscal officer, said successful a media call.

Consolidated bid publication stood astatine ₹4.8 trillion arsenic of 31 March, 20% much than a twelvemonth ago. More than a 3rd of these orders were from planetary markets.

Profit for the afloat twelvemonth surged 25% to ₹13,059 crore, portion gross grew 21% to ₹2.2 trillion. Ebitda for the twelvemonth was 13% higher astatine ₹23,494 crore with an Ebitda borderline of 10.6%, down 69 ground points.

Also read: L&T Q4 Results: Net nett rises 10.3% to ₹4,396 crore, dividend declared; 5 cardinal highlights

“A operation of outgo inflation, clip overrun, delayed colony of claims and concern for maturation relationship for the diminution successful the margins of the infrastructure conception and the margins of the institution overall," Shankar Raman said.

Margins successful the infrastructure projects conception narrowed from 7% successful FY23 to 6.2% successful FY24.

Shankar Raman said that the institution expects FY25 bid intake to turn by 10% connected the precocious basal of FY24. Revenue is expected to turn 15%, aided by the company’s robust bid publication position.

However, the institution expects margins to stay astatine the aforesaid level successful FY25, helium said.

“Despite the ongoing geo-political turmoil globally, the maturation communicative of India continues to powerfulness forward, and we arsenic a institution are arrogant to beryllium an integral portion of this change. The tailwinds of India’s economical maturation volition proceed owed to the interaction of structural reforms, strengthening carnal and integer infrastructure, improving organization spot and beardown governance," said S.N. Subrahmanyan, president and managing director.

The company’s instrumentality connected equity (RoE) during the twelvemonth improved to 14.9% from 12.2% a twelvemonth earlier. The institution targets reaching 18% RoE by FY26.

L&T's largest segment—infrastructure projects—secured orders of ₹31,340 crore, which was 24% little year-on-year, chiefly connected relationship of the ongoing wide elections. The segment’s bid publication stood astatine ₹3.1 trillion arsenic of 31 March, with a 27% stock of planetary orders.

Also read: Larsen & Toubro Q4 results today: Here's what analysts expect from financials to bid successful flows

L&T shares closed 1.53% higher connected the BSE connected Wednesday astatine ₹3,485.2. The Sensex ended the league 0.06% lower.

S&P Global Ratings connected Wednesday assigned 'BBB+' semipermanent issuer recognition standing to the company, which is 2 notches supra India's sovereign rating. The lone different Indian institution to beryllium rated BBB+ is Reliance Industries.

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Published: 08 May 2024, 09:34 PM IST