Last Updated on November 2, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate enterprise that has business interests in various segments, including engineering, manufacturing, technology, IT, and construction, among others. It is among the top five construction companies globally and was founded in 1946 in Mumbai, India, by two Danish engineers who were taking refuge in the country.
L&T announced its financial results for the quarter ending on September 30 on October 31, 2023. The company’s consolidated net profit surged 45% YoY, beating the analysts’ estimates. Here’s a snapshot of the company’s financial performance for the quarter under review.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights (Consolidated)
- L&T reported a 45% YoY increase in its net profit, standing at ₹3,222.63 Cr as against ₹2,228.97 Cr during the same period last year.
- The company’s revenue from operations during the quarter showcased a growth of 19% YoY at ₹51,024.04 Cr, compared to ₹42,762.61 Cr during Q2 FY23.
- The international revenues contributed 43% to the total revenue, standing at ₹21,898 Cr.
- During the period under review, the company received orders worth ₹89,153 Cr at the group level, clocking an impressive 72% increase YoY, the company’s highest in a quarter.
- International orders at ₹59,687 Cr made up 67% of the total order inflow.
According to an exchange filing, L&T reported a 19% YoY increase in its revenue from operations, thanks to improved execution of a large order book along with accelerated progress in its projects and manufacturing portfolio. The consolidated revenues for the quarter stood at ₹51,024.04 Cr.
Additional Read: L&T Share Price
Additionally, at the group level, L&T received orders worth ₹89,153 Cr during the period under review, resulting in an impressive growth of 72% YoY.
Here’s a quick breakdown of its segments.
Infrastructure
The infrastructure segment brought in 48% of the consolidated revenue, registering ₹24,613 Cr during Q2 FY24. During the first half of the year, the segment contributed 47% to the total revenue. In terms of growth, the infrastructure projects segment exhibited a growth of 27% YoY during the quarter and 39% growth during H1 FY24.
The segment also secured order inflows of ₹27,990 Cr, an increase of 12% YoY during the quarter, while the EBITDA margin stood at 5.4%, as against 6.6% registered during Q2 FY23.
Energy
The company received ultra-mega orders in GCC, boosting the Hydrocarbon order book. The energy segment contributed 13% to the revenue composition for the quarter, recording revenues of ₹6,788 Cr, showcasing a growth of 22% YoY. Additionally, with order inflows touching ₹40,141 Cr, the segment’s order book passed ₹1 lakh Cr for the first time.
The EBITDA margins increased to 9.5% during the period under review from 8.5% during Q2 FY23. In the first half of the year, EBITDA margins improved to 9.3% from 8.5% registered during H1 FY23.
Hi-Tech Manufacturing
In the hi-tech manufacturing segment, the company’s revenues grew by 30% YoY to ₹1,886 Cr during the quarter. Its EBITDA margin, however, declined to 14.9% from 18.5% year-on-year.
IT and Tech Services
The IT and Tech services segment witnessed a revenue increase of 7% at ₹11,182 Cr for the period under review. Its EBITDA margins fell during the quarter and the first half of the year.
Financial Services
The financial services segment’s income from operations stood at ₹3,084 Cr, down 2% YoY from ₹3,150 Cr during Q2 FY23. The reported profit after tax (PAT) grew 46% and stood at ₹590 Cr during Q2 FY24.
Management Commentary
Key Announcements
- The company appointed Mr. Ajay Tyagi as an Independent Director for a term of five years, w.e.f October 31, 2023.
- L&T appointed Mr. P. R. Ramesh as an Independent Director for a term of five years, w.e.f October 31, 2023.
- The company also announced that it will be incorporating a wholly owned subsidiary unit to design fabless semiconductor chips and product ownership, with an investment of up to ₹830 Cr.
Larsen & Toubro Limited: H1 Consolidated Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Revenue from Operations | ₹78,615.81 Cr | ₹98,906.41 Cr |
| Total Income | ₹80,049.06 Cr | ₹1,01,184.95 Cr |
| Total Expenses | ₹73,183.82 Cr | ₹91,861.51 Cr |
| Profit Before Tax | ₹6,865.24 Cr | ₹9,323.44 Cr |
| Net Profit After Tax | ₹5,112.21 Cr | ₹6,971.67 Cr |
| Total Comprehensive Income | ₹3,189.77 Cr | ₹6,849.31 Cr |
Larsen & Toubro Limited: Consolidated Financial Figures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Revenue from Operations | ₹47,882.37 Cr | ₹51,024.04 Cr |
| Total Income | ₹49,027.93 Cr | ₹52,157.02 Cr |
| Total Expenses | ₹44,695.56 Cr | ₹47,165.95 Cr |
| Profit Before Tax | ₹4,332.37 Cr | ₹4,991.07 Cr |
| Net Profit After Tax | ₹3,116.12 Cr | ₹3,855.55 Cr |
| Total Comprehensive Income | ₹3,426.82 Cr | ₹3,422.49 Cr |
Consolidated Assets and Liabilities
| Particulars | Q2 FY 2023-24 |
| Non-Current Assets | ₹1,14,173.66 Cr |
| Current Assets | ₹2,07,959.62 Cr |
| Total Assets | ₹3,23,122.03 Cr |
| Total Equity | ₹93,449.91 Cr |
| Non-Current Liabilities | ₹62,417.42 Cr |
| Current Liabilities | ₹1,67,254.70 Cr |
| Total Liabilities | ₹2,29,672.12 Cr |
| Total Equity and Liabilities | ₹3,23,122.03 Cr |
Stock Performance
Larsen & Toubro Ltd. released its financial results for the quarter and half year of FY24 after the market closed on October 31. On Tuesday, its shares opened at ₹2,949.75 and climbed 0.09% to close at ₹2928.80 (₹2.50 more than the previous close value) apiece on BSE.
About the Company
Established in 1946 by two Danish engineers, Larsen & Toubro Ltd. is one of the largest construction companies in the world. It has business interests in several segments, including IT, financial services, technical services, construction, manufacturing, and engineering, among others. L&T also boasts a global footprint, with manufacturing facilities, offices, and customers present in more than 30 countries.
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