Larsen & Toubro (L&T), the engineering behemoth, has reported an impressive 10 per cent year-over-year increase in its consolidated net profit for the March quarter, coming in at Rs 3,987 crore. The company’s total revenue from operations also increased by 10.4 per cent YoY to Rs 58,335.15 crore. In this article, we will delve deeper into L&T’s Q4 results and analyze the company’s performance for FY23.
Financial Performance
Topline and Bottomline
The topline of L&T increased by 17 per cent YoY to Rs 1.83 trillion for FY23, while the bottom line increased by 21 per cent to Rs 10,471 crore. This indicates that L&T has been successful in driving revenue growth and improving profitability.
EBITDA
Earnings before interest, taxes, depreciation, and amortisation (EBITDA), the measure of consolidated operational profit for the March quarter, increased 5 per cent YoY to Rs 6,833 crore while margin shrank by 60 basis points to 11.7 per cent. This implies that while L&T’s operational profit increased, the company’s profitability was slightly impacted due to a decrease in margin.
Order Inflows
Q4 Order Inflows
A 3 per cent increase in orders came in for the quarter, totaling Rs 76,099 crore. 47 per cent of the quarter’s total order inflows, or Rs 36,046 crore, were from overseas. This highlights L&T’s strong international presence and ability to secure significant orders from overseas markets.
FY23 Order Inflows
Order inflows increased by 19 per cent to Rs 2.30 trillion in FY23, evenly dispersed across different market categories. 38 per cent of the entire order inflows, or Rs 86,523 crore, were international, the company said. This indicates that L&T has been able to secure significant orders both domestically and internationally, which is a positive sign for the company’s future growth prospects.
| Shares/Order Inflows | Amount (in Rs crore) | Percentage |
|---|---|---|
| Q4 consolidated net profit | 3,987 | 10% YoY increase |
| Total revenue from operations | 58,335.15 | 10.4% YoY increase |
| FY23 final dividend | 24 per share | Recommended by the board |
| FY23 total revenue (topline) | 1.83 trillion | 17% YoY increase |
| FY23 total net profit (bottom line) | 10,471 | 21% YoY increase |
| EBITDA for Q4 | 6,833 | 5% YoY increase |
| Order inflows for Q4 | 76,099 | 3% increase YoY |
| International order inflows | 86,523 | 38% of total inflows |
| FY23 order inflows | 2.30 trillion | 19% YoY increase |
| Overseas order inflows for Q4 | 36,046 | 47% of total inflows |
Dividend
For FY23, the board has recommended paying a final dividend of Rs 24 per share. This is a positive development for L&T’s shareholders, as it indicates the company’s commitment to returning value to its shareholders.
Conclusion
L&T has reported an impressive set of Q4 results, with a 10 per cent YoY increase in its consolidated net profit and a 10.4 per cent YoY increase in its total revenue from operations. The company has also been successful in securing significant orders both domestically and internationally. Furthermore, L&T’s commitment to returning value to its shareholders is a positive sign for the company’s future growth prospects.
FAQs
- What is L&T’s consolidated net profit for the March quarter? Ans: L&T’s consolidated net profit for the March quarter is Rs 3,987 crore, representing a 10 per cent YoY increase.
- What is L&T’s total revenue from operations for the March quarter? Ans: L&T’s total revenue from operations for the March quarter is Rs 58,335.15 crore, representing a 10.4 per cent YoY increase.
- How much is L&T’s recommended final dividend for FY23? Ans: L&T’s recommended final dividend for FY23 is Rs 24 per share.
- How much did L&T’s order inflows increase by in FY23? Ans: L&T’s order inflows increased by 19 per cent to Rs 2.30 trillion in