L&T Q3 RESULTS 2024: PROFIT INCREASE 15%, BUT MISSES ESTIMATES

L&T reported its Q3FY24 numbers on Tuesday evening. On Wednesday, the share price opened nearly 5% lower. Let us look at everything in detail for L&T's Q3FY24 result.

About L&T

Larsen & Toubro (L&T) is a multinational conglomerate with operations in the engineering, construction, manufacturing, and technology sectors. It is one of the largest and most respected companies in India, involved in projects ranging from infrastructure development to defence and aerospace.

Crucial parameters

• PE: 53.11
• 52-week high: Rs 3.738.90
• Market Cap: Rs 4,76,280.99 crore
• ROE: 15.73

Share price movement

In the last one month, L&T's share has traded flat. In a six-month time frame, the share price has beaten benchmark indices, with a gain of 30.98%. For the 5-year time frame, the share price has more than doubled with a gain of over 150%.

How has L&T performed in Q3FY24?

Let us look at L&T's December quarter numbers in detail:

Revenue: Larsen & Toubro reported consolidated revenues of Rs 55,128 crore for the quarter ended December, a growth of 19% YoY. The company reported higher numbers aided by a ramp-up in the execution of the strong order book in the Projects and Manufacturing portfolio. International revenues during the quarter at Rs 24,300 crore constituted 44% of the total revenue.

EBITDA: The company reported an EBITDA of Rs 5,760 crore, a growth of 14%. It had an EBITDA of Rs 5,053 crore in the corresponding quarter previous year. The EBITDA margins have declined from 11.7% in Q3FY23 to 11.6% in Q3FY24.

Profits: For Q3FY24, L&T reported a consolidated PAT of Rs 2,947 crore, registering a high growth of 15% compared to the corresponding quarter of the previous year. When compared to the recurring profit of the corresponding quarter of the previous year, Profit after Tax registered an impressive growth of 20%.

Order Inflows: The company received orders worth Rs 75,990 crore at the group level during the quarter ended December 31, 2023, registering a robust growth of 25% on a y-o-y basis. During the quarter, orders were received across various businesses like the Offshore vertical of Hydrocarbon, Solar EPC & Power Transmission, Water Utilities, Buildings & Factories, and Minerals & Metals sectors. International orders at Rs 50,562 crore during the quarter comprised 67% of the total order inflow. 

Performance of Different Segments

Below is the performance of different segments of L&T in Q3FY24:

Infrastructure Projects Segment: The Infrastructure Projects segment secured an order inflow of Rs 43,208 crore, during the quarter that ended December 31, 2023, registering a healthy growth of 33% y-o-y basis with receipt of marquee orders mainly in the Power Transmission and Distribution business. International orders at Rs 27,230 crore constituted 63% of the total order inflow of the segment during the quarter.  The segment posted customer revenues of Rs 27,845 crore, registered a y-o-y growth of 27%

Energy Projects Segment: The Energy Projects segment secured orders valued at Rs 13,281 crore, registering 47% growth on a y-o-y basis with the receipt of a mega order in the Offshore vertical of the Hydrocarbon business. International order inflow constituted 93% of the total order inflow during the quarter.

The segment achieved customer revenues of Rs 7,864 crore, recording growth of 24% YoY with EBITDA margins of the segment at 9.7%.

Hi-Tech Manufacturing: The Hi-Tech Manufacturing segment secured orders valued at Rs 2,043 crore, registering a marginal growth of 6% y-o-y. Export orders constituted 15% of the total order inflow. The order book of the segment was at Rs 25,758 crore as of December 31, 2023, with the share of export orders at 8%. The segment posted customer revenues of Rs 2,066 crore and the EBITDA margin of the segment was at 16.7%.

IT & Technology Services (IT&TS) Segment: The segment recorded customer revenues of rs 11,196 crore, registering a modest y-o-y growth of 5%, reflecting growth headwinds in the IT&TS sector. International billing contributed 93% of the total customer revenues. The EBITDA margin for the segment was at 20.7% as compared to 18.9% in the corresponding quarter of the previous year.

Development Projects Segment: The segment recorded customer revenues of Rs 1,220 crore during the quarter ended December 31, 2023, registering growth of 10%. The segment EBIT was at Rs 118 crore as compared to a loss of Rs 6 crore during the corresponding quarter of the previous year, primarily due to an increase in ridership in Hyderabad Metro and the consolidation of profits of Nabha Power.

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Outlook

The company possesses the necessary capability and flexibility to continuously rebalance its approach and strategy to benefit from the dynamic business environment. They are focused on tapping emerging opportunities both in India and overseas with their proven competence in the domains of engineering, manufacturing, construction, project management, and services for the profitable execution of their large Order Book. As it has always been, the company continues to remain committed to creating sustainable long-term returns for its stakeholders.