L&T Financial Results for the year ended March 31, 2024

365Telugu.com online news,Mumbai, May 8, 2024:Larsen & Toubro achieved Consolidated Revenues of ₹ 221,113 crore for the year ended March 31, 2024 recording a healthy y-oy growth of 21%, facilitated by a strong execution of a large order book in the Projects & Manufacturing businesses.

International revenues during the year at ₹ 95,086 crore constituted 43% of the total revenues largely led by a ramp up in execution of multiple international projects.

For the quarter ended March 31, 2024, the Consolidated Revenues at ₹ 67,079 crore recorded a y-o-y growth of 15%. The share of international revenues during the quarter was 45%.

The Company for the year ended March 31, 2024, posted a Consolidated Profit After Tax (PAT) of ₹ 13,059 crore, registering a robust growth of 25% compared to the previous year.

The PAT includes an exceptional gain (net of tax) of ₹ 94 crore, attributed to the divestment of stake in L&T IDPL (L&T Infrastructure Development Projects Limited).

For the quarter ended March 31, 2024, the PAT at ₹ 4,396 crore, registered a growth of 10% y-o-y basis.

The Board of Directors has recommended a final dividend of ₹ 28 per equity share, for the approval of shareholders.

The Company received orders worth ₹ 302,812 crore at the group level during the year ended March 31, 2024, registering a robust y-o-y growth of 31%. During the year, orders were received across multiple segments like Onshore & Offshore verticals in Hydrocarbon,Metros,Urban Transit Systems, Airports, Roads & Bridges,Residential, Renewables, Transmission & Distribution and the Precision Engineering sectors.

International orders at ₹ 163,112 crore during the year comprised 54% of the total order inflow with higher ordering momentum witnessed in GCC countries.

The order inflow for the quarter ended March 31, 2024 stood at ₹ 72,150 crore, registering a marginal de-growth of 5% over the corresponding quarter of the previous year. Domestic order inflow grew by 17% as compared to the corresponding quarter of the previous year. International orders at ₹ 25,217 crore constituted 35% of the total.

The consolidated order book of the group as on March 31, 2024, is at ₹ 475,809 crore registers growth of 20% over the previous year, with the share of international orders at 38%.

Commenting on the results, S.N. Subrahmanyan, Chairman and Managing Director said:

“The year has concluded on a very strong note for us. We have secured Order Inflows of more than ₹ 3 lakh crore and Order Book is around ₹ 4.75 lakh crore, reflecting the continued trust reposed on us by all our esteemed clients. During the year, we successfully completed the maiden Buyback of Equity Shares, in line with our aim to improve shareholder value. Furthermore, in addition to the special divided of ₹ 6 per share paid to our equity shareholders during the year, we are recommending a final dividend of ₹ 28 per share for the financial year 2023-24.

In line with our Lakshya 2026 plan to divest from non-core businesses, we concluded the sale of our stake in L&T IDPL.

We are confident that our new age businesses such as Green Energy, Semiconductor Chip Design, Digital Platforms and Data Centers will harness the power of technology and compliment the growth of our traditional core businesses in accelerating our strides towards our perspective plan targets.

Recently, some of our marquee projects were inaugurated / completed such as Atal Setu and Coastal Road project in Mumbai. The Company also played its part in the construction of the iconic Ram Mandir at Ayodhya which was consecrated on January 22, 2024. This faith posed by our customers on our capabilities to complete iconic and complex engineering projects in a time-bound manner with highest standards of quality and safety continues.

Despite the ongoing geo-political turmoil globally, the growth story of India continues to power forward and we as a Company are proud to be an integral part of this change.

The 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.”

Segment-wise Performance Highlights

Infrastructure Projects Segment

The Infrastructure Projects segment secured order inflow of ₹ 142,589 crore, during the year ended March 31, 2024, registering a healthy growth of 22%, as compared to the previous year, aided by capex spend by government and continued investment buoyancy in the Middle East region.

International orders at ₹ 54,641 crore constituted 38% of the total order inflow of the segment during the year.

The segment secured orders of ₹ 31,340 crore, during the quarter ended March 31, 2024, registering a degrowth of 24% over the corresponding quarter of the previous year, largely due to the receipt of some high-value orders in the previous year. International orders constituted 22% of the total order inflow for the quarter.

The segment order book stood at ₹ 311,665 crore as on March 31, 2024, with the share of international orders at 27%.

For the year ended March 31, 2024, the customer revenues at ₹ 112,551 crore registered a healthy y-o-y growth of 30%, aided by robust execution momentum of a diversified order book portfolio. International revenues constituted 30% of the total customer revenues of the segment during the year.

The segment recorded customer revenues of ₹ 38,035 crore for the quarter ended March 31, 2024, registering a y-o-y growth of 22%. International revenues constituted 36% of the total customer revenues of the segment during the quarter.

The EBITDA margin of the segment during the year ended March 31, 2024 was at 6.2%. Margin for the year remained subdued, attributed to costs essentially arising out of supply chain and logistical issues. The same should be overcome as we go forward.

Energy Projects Segment

The Energy Projects segment secured orders valued at ₹ 73,788 crore during the year ended March 31, 2024, registering a substantial growth of more than 100% on y-o-y basis with receipt of two ulta mega orders in Onshore vertical & a mega order in the Offshore vertical of Hydrocarbon business and receipt of a few Flue Gas Desulpharization orders in the Power business.

International order inflow constituted 87% of the total order inflow during the year aided by higher Oil & Gas capex spend by GCC customers.

The segment secured orders of ₹ 13,120 crore, during the quarter ended March 31, 2024, registering a significant growth of 48% over the corresponding quarter of the previous year on the receipt of multiple international orders in Hydrocarbon business. International orders constituted 52% of the total order inflow for the quarter.

The segment order book was at ₹ 118,189 crore as on March 31, 2024, with the international order book constituting 80%.

For the year ended March 31, 2024, the customer revenues at ₹ 29,539 crore registered a growth of 19% y-o-y on the back of improved order book execution in the Hydrocarbon business. International revenues constituted 58% of the total customer revenues of the segment during the year.

The segment achieved customer revenues of ₹ 8,205 crore during the quarter ended March 31, 2024, recording a modest growth of 4% y-o-y. International revenues had a share of 61% of the total customer revenues for the quarter.

The EBITDA margin of the segment at 10.0% for the year ended March 31, 2024 improved compared to 9.1% over previous year, primarily on account of cost savings and customer reimbursements, in both Hydrocarbon and Power businesses.

Hi-Tech Manufacturing Segment

In line with the vision to pursue opportunities in the emerging technology intensive sectors like Defence and Space, the Defence Engineering business has been renamed to L&T Precision Engineering & Systems with effect from April 01, 2024. This, along with the Company’s Heavy Engineering business constitutes the Hi-Tech Manufacturing segment.

The segment secured orders valued at ₹ 14,278 crore during the year ended March 31, 2024 registering a de-growth of 9% over the previous year, with deferment of orders in the Precision Engineering & Systems business. Export orders constituted 16% of the total order inflow of the segment during the year.

The segment secured orders of ₹ 8,790 crore, during the quarter ended March 31, 2024, registering a growth of 3% over the corresponding quarter of the previous year. International orders constituted 14% of the total order inflow for the quarter.

The order book of the segment was at ₹ 31,975 crore as on March 31, 2024, with the share of export orders at 8%.

For the year ended March 31, 2024, the customer revenues at ₹ 8,196 crore registered a robust growth of 25% y-o-y, with improved execution of orders in both businesses.International revenues constituted 31% of the total customer revenues of the segment during the year.

The segment posted customer revenues of ₹ 2,462 crore for the quarter ended March 31, 2024, registering a growth of 15% over the corresponding quarter of the previous year. Export sales comprised 25% of the total customer revenues for the quarter.

The EBITDA margin of the segment at 16.3% for the year ended March 31, 2024.

IT & Technology Services (IT&TS) Segment

The segment recorded customer revenues of ₹ 44,473 crore for the year ended March 31, 2024, registering y-o-y growth of 7%, reflecting moderate growth, as concerns on global macroeconomic condition impacted customer spends in the IT&TS sector.

International billing contributed 92% of the total customer revenues of the segment for the year ended March 31, 2024. The aggregate revenues of the two listed subsidiaries(LTIMindtree Limited and L&T Technology Services Limited) in this segment at USD 5,451 Mn registered a y-o-y growth of 5%.

The segment recorded customer revenues of ₹ 11,244 crore for the quarter ended March 31, 2024, recording a y-o-y growth of 3%. International billing contributed 91% of the total customer revenues. In USD terms, aggregate revenues of the two listed subsidiaries in the segment revenues of 1,375 Mn for the quarter grew 2% on a y-o-y basis.

The EBITDA margin for the segment was at 20.4% for the year ended March 31, 2024 is largely in line with previous year.

Financial Services Segment

The segment recorded income from operations at ₹ 13,109 crore during the year ended March 31, 2024, registering y-o-y growth of 4% with a sharp focus on retail loans.

The segment recorded income from operations at ₹ 3,598 crore during the quarter ended March 31, 2024, registering y-o-y growth of 15%.

The total Loan Book at ₹ 85,565 crore grew by 6% as compared with March 2023 at₹ 80,893 crore mainly due to higher retail disbursements across various verticals in Rural and Urban Finance.

The Retail loan book increased by 31% while wholesale loan book shrunk by 72% during the year. The Retail loan book now constitutes 94% of the total loan book as on March 31, 2024, achieving its Lakshya targets well ahead of FY 2025-26.

The segment PBT for the year ended March 31, 2024 increased to ₹ 3,028 crore as compared to ₹ 2,259 crore in the previous year due to better NIM+Fees and lower credit costs arising out of favourable revenue mix (higher Retail portfolio).

Development Projects Segment

The segment recorded customer revenues of ₹ 5,620 crore during the year ended March 31, 2024 registering a growth of 12% over the previous year, driven by monetization of a commercial property and higher ridership in Hyderabad Metro.

For the quarter ended March 31, 2024, the customer revenues at ₹ 1,258 crore, recorded a growth of 2% y-o-y.

The segment EBIT for the year ended March 31, 2024 registered a profit of ₹ 1,015 crore with a substantial growth over the previous year, primarily aided by the gain on sale of commercial property in Hyderabad Metro.

“Others” Segment

“Others” segment comprises (a) Realty (b) Industrial Valves (c) Construction Equipment & Mining Machinery and (d) Rubber Processing Machinery.

Customer revenues of the segment during the year ended March 31, 2024 at ₹ 7,626 crore registered a growth of 26% y-o-y, primarily on higher handover of residences in the Realty business and improved demand in Industrial Valves.

Export sales constituted 10% of the total customer revenues of the segment during the year, majorly relating to Industrial Valves and Rubber Processing Machinery businesses.

The customer revenues of this segment during the quarter ended March 31, 2024 at₹ 2,277 crore, has registered growth of 27% y-o-y. Export sales constituted 12% of the total customer revenues.

During the year ended March 31, 2024, the segment EBITDA margin at 21.2%, is higher vis-à-vis previous year at 19.8% mainly aided by higher handover of flats in the Realty business.

Also read : Financial Results for the Quarter and Yearended March 31, 2024