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Informist, Wednesday, Jul 24, 2024

 

--L&T: Apr-Jun consol net profit 27.86 bln rupees
--L&T: Analysts saw L&T Apr-Jun consol PAT 28.14 bln rupees
--L&T: Apr-Jun consol revenue 551.20 bln rupees
--L&T: Apr-Jun consol net profit 27.86 bln rupees vs 24.93 bln
--L&T: Apr-Jun consol revenue 551.20 bln rupees vs 478.82 bln
--L&T: Apr-Jun consol EBITDA 56.15 bln rupees, up 15% on year
--L&T: Apr-Jun consol EBITDA margin 10.2%, flat on year
--L&T: Consol order book 4.91 trln rupees as on Jun 30
--L&T: Apr-Jun infrastructure ops EBITDA margin 5.8%
--L&T: Apr-Jun infrastructure ops EBITDA margin 5.8% vs 5.1% yr ago
--L&T: Apr-Jun energy ops EBITDA margin 8.7% vs 9.1% year ago
--L&T: Apr-Jun hi-tech mfg EBITDA margin 17.4% vs 16.8% year ago
--L&T: Got total orders of 709.36 bln rupees Apr-Jun at group level
--L&T: Got international orders worth 325.98 bln rupees in Apr-Jun

--L&T: Apr-Jun domestic order inflow up 1% on year
--L&T: Infra order inflow slowed in Apr-Jun due to elections
--L&T: See no rush in private capex, it's more measured, need based

 

By Rajesh Gajra

 

MUMBAI – Strong growth in revenue and operating margin from the infrastructure projects segment were the key drivers of Larsen & Toubro Ltd's earnings performance in the quarter ended June. The segment, which made up for 22% of consolidated revenue of the company, however, recorded flat growth in order inflow during the quarter.

 

The contraction in margins in other key segments of energy and information technology offset the infrastructure segment's performance and the company's consolidated margin performance remained unchanged from the corresponding period of last year. L&T's bottomline growth for the June quarter was reined in as a result of this, with further aggravation from a sharp rise in depreciation.

 

The construction and engineering behemoth's consolidated net profit increased 11.7% on year to 27.86 bln rupees in the quarter ended June and its revenue from operations increased by 15.1% to 551.20 bln rupees. Analysts had estimated net profit of 28.14 bln rupees and revenue from operations of 515.47 bln rupees.

 

L&T's consolidated earnings before interest, taxes, depreciation, and amortisation went up 15% on year to 56.15 bln rupees on the back of a 39% rise in that of infrastructure projects segment, and also from a 22% rise in EBITDA of the energy projects segment. The growth was reined in by a 3?ll in EBITDA of the IT and technology services segment and single-digit increase of 7% in that of hi-tech manufacturing.

 

The EBITDA margin of the company stayed unchanged at 10.2% in the June quarter as compared to the year-ago quarter. The margin growth was muted largely due to contraction in margins of the energy projects and technology services segments.

 

The energy projects segment margin contracted to 8.7% from 9.1%, while that of technology services contracted to 20% from 20.6%. There was expansion in the margin of L&T's infrastructure projects segment to 5.8% from 5.1%, and in the hi-tech manufacturing segment to 17.4% from 16.8%.

 

L&T's revenue growth was aided by its projects and manufacturing business, comprising infrastructure projects, energy projects, hi-tech manufacturing, and others. These segments collectively recorded a weak 18% revenue growth at 386.24 bln rupees during the reporting quarter.

 

The June quarter order inflow of L&T at a group level was 709.36 bln rupees, up 8.3% over the year-ago period. Of this, international orders made up 325.98 bln rupees. The projects and manufacturing business saw an order inflow of 544.40 bln rupees, up 8.1% on year.

 

The order inflow of the services and concessions business, comprising segments of IT and technology services, financial services, and developmental projects, was 165 bln rupees, up 8.9% on year. The company's management told investors and analysts in a post-earnings call today that the domestic order inflow growth was nearly muted at 1%.

 

The company management further said the order inflow in the June quarter in infrastructure projects slowed down due to elections. In Apr-Jun orders were received by L&T from sectors such as hydrocarbons, transmission and distribution, roads, nuclear power, hydel and tunnel, ferrous metals, precision engineering, and renewables.

 

The company does not expect any rush in private capital expenditure going forward, the management said in the investor call. It said that private capital expenditure is need-based and measured. The consolidated order book of the company at group level was 4.91 trln rupees as on Jun 30. Today, the shares of L&T ended 0.5% lower at 3,519.45 rupees on the National Stock Exchange.  End

 

Edited by Aditya Sakorkar

 

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