Construction-to-IT conglomerate Larsen and Toubro (L&T) posted a consolidated net profit of Rs 2,493 crore on Tuesday for the quarter ending June 2023. Its reported profit for the first quarter (Q1) is 46.5 percent higher compared to the Rs 1,702.07 crore net profit posted in the same quarter last year. According to the company’s stock application, consolidated revenue for the quarter was Rs 47,882 crore, up 33.6 percent from Rs 35,853 crore a year ago.
International revenue during the quarter was Rs 19,022 crore, accounting for 40 percent of total revenue.
According to the filing, the board of directors of L&T has recommended a special dividend of Rs 6 per share share for shareholder approval. The board of directors of the company has also approved a Rs 10,000 crore share buyback.
The company received orders worth Rs 65,520 crore at group level during Q1, a growth of 57 percent over the corresponding quarter of last year. International orders of Rs 27,646 crore during the quarter made up 42 percent of total orders. The L&T group’s consolidated order book stood at Rs 412,648 crore at the end of the first quarter, with international orders accounting for 29 percent share. The order book has increased by more than 13.5 percent compared to the same period last year.
L&T’s infrastructure projects segment secured orders worth Rs 40,051 crore in the first quarter of the current fiscal year. This figure doubled compared to the corresponding quarter of last year, with a diverse range of orders in different sub-segments.
L&T’s operating margin for the first quarter of FY24 was 10.2 percent, compared to 11.04 percent in the year-ago quarter.
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For the outlook for the next quarter, the construction major said it expects growth momentum to continue in the Indian market going forward thanks to stable rabi crop production, an expected normal monsoon, continued buoyancy in the services sector and stable inflation with a declining trend.
“Higher capex allocation from the government in the green economy, including clean and renewable energy, will provide the necessary impetus for investments in energy transition and larger infrastructure projects,” the company said in a press release.
“The focus will continue to be on cash generation and wise capital allocation. L&T has a robust pipeline for medium-term order prospects and is confident in maintaining its growth momentum by leveraging emerging opportunities, with the overarching goal of improving shareholder value on a sustainable basis,” the company said.
“On the global front, major economies are just around the corner. Falling energy prices and general inflation, the reduction of supply bottlenecks and the reopening of the Chinese economy are some of the positive factors leading the economy towards achieving much-needed growth. Major oil-producing countries continue to invest in oil and gas, industrialization and energy transition initiatives, which will bode well for the company’s Projects business,” the company added.