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Informist, Thursday, Jan. 30, 2025

 

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-- L&T Oct-Dec consol net profit INR 33.59 bln
-- L&T Oct-Dec consol net profit INR 33.59 bln vs INR 29.47 bln year ago
-- Analysts saw L&T Oct-Dec consol net profit INR 36.72 bln
-- L&T Oct-Dec consol revenue INR 646.68 bln vs INR 551.28 bln year ago
-- L&T Apr-Dec consol net profit INR 95.40 bln vs INR 86.63 bln year ago
-- L&T Apr-Dec consol revenue INR 1.813 tln vs INR 1.540 tln year ago
-- L&T Oct-Dec consol order inflow INR 1.16 tln, up 53% on year
-- L&T consol order book INR 2.67 tln as on Dec 31
-- L&T Oct-Dec overseas orders INR 620.59 bln, 53% of total order inflow
-- L&T Oct-Dec infra project order inflow INR 490.70 bln, up 14% on year
-- L&T Oct-Dec infra project order book INR 3.61 tln, overseas share 37%
-- L&T Oct-Dec consol EBITDA INR 62.55 bln vs INR 57.59 bln year ago
-- L&T Oct-Dec consol EBITDA margin 9.7% vs 10.4% year ago
-- L&T Oct-Dec infra project revenue INR 321.34 bln vs INR 278.45 year ago
-- L&T Oct-Dec infra project revenue INR 321.34 bln vs INR 278.45 bln yr ago
-- L&T Oct-Dec infra project EBITDA margin 5.5%, unchanged on year
-- L&T Oct-Dec energy project revenue INR 110.51 bln vs INR 78.64 bln yr ago
-- L&T Oct-Dec energy project EBITDA margin 8.3% vs 9.7% year ago
-- L&T Oct-Dec tech svcs revenue INR 120.61 bln vs INR 111.96 bln year ago

 

By Rajesh Gajra

 

NEW DELHI – The construction and engineering behemoth Larsen & Toubro Ltd.'s performance was steady in the December quarter, but it missed analysts' estimates on its top line and bottom line numbers. Order execution momentum across the company's projects and manufacturing segment, domestic and overseas, aided revenue during the quarter.

 

L&T reported a 17.3% on-year and 5.1% sequential increase in consolidated revenue from operations to INR 646.68 billion, which, however, was below the Street estimate of INR 658.5 billion. The company's consolidated net profit, attributable to owners of the company, rose 14% on year to INR 33.59 billion, below analysts' estimate of INR 36.7 billion. Sequentially, the consolidated net profit declined 1.1%.

 

The company said the 17% on-year revenue growth in the December quarter was aided by "strong order book and ramp up in execution momentum across Projects & Manufacturing (P&M) businesses." The company said international revenues during the quarter were INR 327.64 billion and made up for 51% of total revenues. There was improved execution in international projects and manufacturing portfolio, the company said.

 

Operating profit growth of the company was moderate in the December quarter, and margin contracted due to sharp rise in select manufacturing, construction, and operating expenses. The consolidated earnings before interest, tax, depreciation, and amortisation of the company increased 8.6% on year to INR 62.55 billion in the December quarter, while the EBITDA margin contracted to 9.7% from 10.4% a year ago. The cost of raw materials and components consumed jumped up by 51% on year to INR 72.86 billion, purchase of stock-in-trade was up 60% to INR 4.56 billion, and sub-contracting charges rose significantly by 22% to INR 111.26 billion.

 

L&T's consolidated order inflow in the December quarter was INR 1.160 trillion, which, according to the company, was the highest ever in a quarter.  These orders came from multiple geographies, apart from domestic projects. International orders were of INR 620.59 billion and made up for 53% of total order inflow, the company said. The orders encompassed sectors such as thermal power, power transmission, precision engineering, minerals and metals, commercial buildings, hydrocarbon onshore, renewable, and water, the company said.  The consolidated order book of the company was at INR 5.642 trillion as on Dec. 31. Of this, international orders made up for 42%.

 

SEGMENTAL PERFORMANCE

The infrastructure projects segment contributed the most to L&T's total revenue. Revenue in the infrastructure projects segment of the company increased 15% on year to INR 321.34 billion. The company said this was attributable to execution of a large order book. Overseas revenues contributed 42% of total revenues of the segment.

 

The EBITDA margin in the infrastructure project segment was flattish at 5.5% compared to the year-ago quarter. The segment secured order inflow of INR 490.70 billion in the December quarter, of which 74% were overseas orders. The international order inflow was aided by major orders from customers in power transmission and distribution, and renewable energy, businesses, L&T said. The segment order book was at INR 3.613 trillion as on Dec. 31.

 

The second-largest segment for L&T, energy projects, had the December quarter revenue jump up by 41% on year to INR 110.51 billion. This was majorly due to an execution ramp up in international projects, the company said. International revenue contributed two-thirds of the segment revenue.

 

The EBITDA margin of the energy projects segment contracted to 8.3% in the December quarter from 9.7% a year ago. The company said the contraction in margin reflected "the stage of execution of jobs in the portfolio."

 

Order inflow in energy projects during the December quarter was INR 388.18 billion. According to the company, this was aided by mega orders in hydrocarbon and carbonlite businesses. Overseas orders made up for one-third of the segment order inflow. As on Dec. 31, the segment order book was at INR 1.458 trillion.

 

In L&T's third key segment of hi-tech manufacturing, revenue was up 18% on year to INR 24.33 billion in the December quarter, due to "improved progress in jobs of the precision engineering and systems business." Of this, overseas jobs contributed 23%. The segment's EBITDA margin expanded to 18.2% from 16.7% a year ago on the back of "timely execution and cost savings in heavy engineering business," the company said.

 

Hi-tech manufacturing order inflow was INR 84.23 billion in the December quarter. Of this, export orders made up for 15%. The order book in this segment as on Dec. 31 was at INR 417.69 billion, with export orders' share being 11%.

 

In Apr-Dec, the consolidated net profit of L&T was up 10% against the same period in the previous year to INR 95.40 billion, while the revenue from operations was up 18% to INR 1.813 trillion. Thursday, shares of L&T closed 0.83% lower at INR 3,420.95 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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