L&T Q1 results: Net profit rises 12% to ₹2,786 crore; here are 5 key highlights

Engineering and construction giant Larsen and Toubro (L&T) announced a 12 per cent year-on-year increase in its consolidated net profit, reaching ₹2,786 crore for the quarter ending June 30, 2024, on Wednesday. According to brokerage estimates, the profit were not up to the mark to the street estimates.

“We have achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe. Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology driven new-age businesses. The Financial Services portfolio has achieved a remarkable transformation into Retail Finance with improved profitability. To enhance our presence in the Semiconductor sector, we have recently entered into a share purchase agreement with SiliConch Systems, a Bengaluru based chip design company," said S.N. Subrahmanyan, Chairman and Managing Director.

Here are 5 key highlights from L&T Q1 results -

PAT and revenue

L&T posted a 12 per cent surge in its profit after tax (PAT) at ₹2,786 crore for the June quarter compared to ₹2,493 crore in the same quarter last year. Revenue from operations rose by 15 per cent year-on-year to ₹55,120 crore, driven by strong execution in the projects and manufacturing (P&M) portfolio, supported by a substantial order book.

EBITDA

The company reported an EBITDA of ₹5,615 crore, reflecting a 15 per cent year-on-year increase. The margins for the same period stood at 10.2 per cent.

Company Orders

The company secured orders totaling ₹70,936 crore at the group level in the first quarter, marking an 8 per cent year-on-year increase, driven by robust ordering activity in the Middle East. During the quarter, orders were received across multiple segments like Offshore vertical of Hydrocarbon business, Renewables, Transmission & Distribution, Roads, Nuclear Power, Hydel & Tunnel, Ferrous Metals, Health, and the Precision Engineering sectors. International orders at ₹ 32,598 crore during the quarter comprised 46 per cent of the total order inflow.

Segment-wise performance

Infrastructure Projects segment - The segment order book stood at ₹ 324,879 crore as on June 30, 2024, with the share of international orders at 28 per cent.

Energy Projects segment - The segment order book was at ₹ 117,724 crore as on June 30, 2024, with the international order book constituting 76 per cent.

Hi-Tech Manufacturing segment - The order book of the segment was at ₹33,765 crore as on June 30, 2024, with the share of export orders at 7%.

IT & Technology Services (IT&TS) segment - The segment recorded customer revenues of ₹ 11,505 crore for the quarter ended June 30, 2024, registering y-o-y growth of 6%, reflective of subdued global macro outlook impacting discretionary IT&TS spends.

Financial Services segment - The segment recorded income from operations at ₹ 3,664 crore during the quarter ended June 30, 2024, registering y-o-y growth of 21% mainly attributable to higher disbursements in the retail business.

Development Projects segment - The segment recorded customer revenues of ₹ 1,327 crore during the quarter ended June 30, 2024 registering a growth of 3% over the previous year.

Outlook

The company retains the focus on profitable execution of its robust order book in the backdrop of a relatively stable environment. It is well positioned to exploit the emerging opportunities across the diversified business portfolio and limit exposure on non-core businesses. The company remains committed to maximizing sustainable value to all its stakeholders.