L&T's Q4 Net Profit Climbs 10% to Rs 4,396 Cr Amid Strong Order Inflows

Larsen & Toubro (L&T), a leading engineering and construction conglomerate, has announced a 10.2% increase in its consolidated net profit for the quarter ending March 2024, reaching Rs 4,396.12 crore. This performance marks a significant improvement from the Rs 3,986.78 crore net profit recorded in the same period last year. The company's consolidated income also saw a robust increase, rising to Rs 68,120.42 crore from Rs 59,076.06 crore year-on-year, according to a recent filing with the Bombay Stock Exchange (BSE).

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L&T's Chairman and Managing Director, S.N. Subrahmanyan, highlighted the company's strong performance over the year, noting an order inflow exceeding Rs 3 lakh crore and an order book around Rs 4.75 lakh crore. This achievement underscores the continued confidence placed in L&T by its esteemed clients. Subrahmanyan also pointed out the successful completion of the company's maiden equity share buyback and the distribution of a special dividend of Rs 6 per share, alongside a recommended final dividend of Rs 28 per share for FY 2023-24.

The company's profit after tax (PAT) for the quarter stood at Rs 4,396 crore, showing a year-on-year growth of 10%. The board has recommended a final dividend of Rs 28 per equity share for shareholder approval. During FY24, L&T received orders worth Rs 3,02,812 crore at the group level, marking a 31% growth.

Chief Financial Officer Shankar Raman shared insights during a conference call about the diverse sectors contributing to this year's order inflow, including hydrocarbon verticals both onshore and offshore, urban transit systems like metros and airports, as well as roads, bridges, residential projects, renewables, transmission and distribution, and precision engineering sectors. International orders amounted to Rs 1,63,112 crore during the year, accounting for 54% of total order inflow with significant contributions from Gulf Cooperation Council (GCC) countries.

The infrastructure projects segment alone secured an order inflow of Rs 1,42,589 crore during FY24, registering a 22% growth year-on-year. Meanwhile, the energy projects segment witnessed an impressive growth of over 100%, securing orders worth Rs 73,788 crore.

Raman also discussed the company's strategy for improving profitability and reducing debt through monetisation of transit-oriented development projects. He expressed optimism for FY25 and confirmed plans for restructuring Hyderabad Metro as part of L&T's divestment strategy for the coming year. Additionally, he mentioned the anticipated completion of Ram Mandir by March 2025.

L&T remains optimistic about India's growth momentum in the medium term. This outlook is supported by sustained domestic demand strength, easing inflationary pressures, focused fiscal spending by the government, and a strong manufacturing revival through new age greenfield investments and brownfield expansion across various sectors.

As an Indian multinational engaged in engineering, procurement, and construction (EPC) projects, high-tech manufacturing and services, L&T operates in over 50 countries worldwide. Its latest financial performance and strategic initiatives reflect its commitment to enhancing shareholder value while contributing significantly to infrastructure development both in India and globally.