L&T Q1 Result: Construction Major's Profit Jumps 46 Per Cent; Rs 6 Per Share Special Dividend Declared

As per L&T's exchange filing, consolidated revenue for the quarter stood at Rs 47,882 crore, up 33.6 per cent from Rs 35,853 crore a year ago

L&T received orders worth Rs 65,520 crore at the group level during Q1, registering a growth of 57 per cent over the corresponding quarter of the last year. ( Image Source :Getty )

Construction-to-IT conglomerate Larsen and Toubro (L&T) on Tuesday posted a consolidated net profit of Rs 2,493 crore for the quarter ended June 2023. The reported profit for the first quarter (Q1) is 46.5 per cent higher compared to the Rs 1,702.07 crore net profit posted in the same quarter last year. As per the company's exchange filing, consolidated revenue for the quarter stood at Rs 47,882 crore, up 33.6 per cent from Rs 35,853 crore a year ago. 

International revenues during the quarter stood at Rs19,022 crore constituting 40 per cent of the total revenue.

As per the filing, the Board of Directors of L&T has recommended a special dividend of Rs 6 per equity share for the approval of shareholders. The company's board has also approved a share buyback of Rs 10,000 crore.

The company received orders worth Rs 65,520 crore at the group level during Q1, registering a growth of 57 per cent over the corresponding quarter of the last year. International orders at Rs 27,646 crore during the quarter comprised 42 per cent of the total orders. The consolidated order book of the L&T group stood at Rs 412,648 crore by the end of Q1, with international orders having a share of 29 per cent. The order book jumped over 13.5 per cent compared to the same period last year. 

L&T's infrastructure projects segment secured orders worth Rs 40,051 crore in Q1 of the current fiscal year. This figure doubled in comparison to the corresponding quarter of the last year, with a diverse range of orders obtained across various sub-segments.

L&T's operating margin for the first quarter of FY24 stood at 10.2 per cent, compared to 11.04 per cent in the year-ago quarter. 

For the outlook of the next quarter, the construction major said that going forward it expects growth momentum in the Indian market to continue on the back of a stable rabi crop production, expected normal monsoon, continued buoyancy in services, and stable inflation with a softening bias.

"Higher government capex allocation in the green economy, including clean and renewable energy will provide the necessary impetus to investments in energy transition and larger infrastructure projects," the company said in a press release.

"Focus will remain on cash generation and judicious capital allocation. L&T has a robust order prospects pipeline in the medium term and is confident of sustaining its growth momentum by utilising the emerging opportunities, with an overarching aim of improving shareholder value on a sustainable basis," the company said.

"On the global front, major economies are turning around the corner. Falling energy prices and headline inflation, easing supply bottlenecks and the reopening of China's economy are some of the positive factors guiding the economy towards attaining the much needed growth. Major oil producing nations continue to invest on oil & gas, industrialisation and energy transition initiatives, that will augur well for the company’s Projects business," the company further added.