Larsen & Toubro posted a 10 percent surge in net profit in the fourth quarter of FY24, in line with estimates, as the company's revenue from operations rose 15 percent in the January-March quarter.
Bouyed by a rise in its revenues, L&T's net profit climbed to Rs 4,396 crore in the three months ended March 31 from Rs 3,621 crore a year earlier, in line with estimates of Rs 4,380 crore.
The Board of Directors has recommended a final dividend of Rs 28 per equity share, for the approval of shareholders.
Here are the key highlights from the fourth quarter and full year results of Larsen & Toubro:
Q4 and FY24 numbers:
Consolidated net sales at Rs 67,079 crore recorded a rise of 15 percent versus Rs 58,335 crore in the corresponding period of the previous year
Profit after tax was Rs 4,396 crore compared to Rs 3,621 crore in the corresponding period of the previous year, registering a rise of
nearly 10 percent.
FY24 consolidated net sales was up 21 percent at Rs 2.21 lakh crore from Rs. nearly Rs 1.83 lakh crore last year. FY24 profit after tax was Rs 13,059 crore, a jump of 25 percent as compared to Rs 10,471 crore in FY23.
Order inflows
L&T's order inflow for the quarter ended March 31, 2024 stood at Rs 72,150 crore, registering a de-growth of five percent over the corresponding quarter of the previous year when order inflows stood at Rs 76,099 crore.
International orders were at Rs 25,217 crore, constituting 35 percent of the total order book.
The company's order inflow during FY24 stood at Rs 3 lakh crore, up 31 percent when compared with an order inflow of Rs 2.3 lakh crore seen in FY23.
L&T's consolidated order book of the group stood at Rs 475,809 crore as on March 31, 2024, with international orders having a share of 38 percent, the company said.
The order book of Rs 4,75,809 crore represents a growth of 20 percent over Rs 3,99,526 as on March 31, 2023 and Rs 357,595 crore as on March 31, 2022.
Outlook:
Going forward, L&T expects India's economic growth momentum to continue in the medium term facilitated by both public and private capital investment.
The company said it expects tailwinds of India’s economic growth will continue due to the impact of structural reforms, strengthening physical and digital infrastructure, improving institutional strength and strong governance
However, despite the strong growth momentum expected domestically, L&T expects a slowdown in order inflows from international markets.
It added that the US Presidential elections in November 2024 is expected to contribute to the economic volatility.
The construction major said the UK and Europe economies are still fragile and concerns around real estate bubble in China could further dampen economic revitalization.
L&T added that the Middle East region or West Asian countries have also felt the impact of the ongoing conflict in the and disruptions in the Red Sea and going forward if the conflict continues, it could have an adverse economic impact on the region.
The company added that geopolitical tensions, volatility in international financial markets, geoeconomic fragmentation, continuing sea route trade disruptions, and extreme weather events, pose risks to the outlook for 2024-25.
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