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L&T gains as Q1 PAT rises 12% YoY to Rs 2,786 cr

25-Jul-24 10:27 Hrs IST

The company achieved revenue growth with robust execution witnessed in the Projects & Manufacturing (P&M) portfolio on the back of a large order book. International revenues during the quarter stood at Rs 26,248 crore constituted 48% of the total revenues.

Profit before tax grew by 7.95% year on year to Rs 4,676.65 crore in quarter ended 30 June 2024.

EBITDA in Q1 FY25 was at Rs 5,615 crore, up 15% from Rs 4,869 crore reported in Q1 FY24. EBITDA margin remained constant at 10.2% in Q1 FY25 as compared to Q1 FY24.

L&T received orders worth Rs 70,936 crore at the group level during the quarter ended 30 June 2024, registering a YoY growth of 8% aided by the strong ordering momentum 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 was at Rs 32,598 crore in Q1 FY25 comprised 46% of the total order inflow.

The consolidated order book of the group as on 30 June 2024, stood at Rs 490,881 crore registering a growth of 3% over March 2024 and 19% YoY, with the share of international orders at 38%.

The Infrastructure Projects segment recorded customer revenues of Rs 26,908 ccrore for the June quarter, up 22% YoY, aided by improved execution momentum witnessed across various project sites. International revenues constituted 34% of the total customer revenues of the segment during the quarter. The segment secured order inflow of Rs 40,053 crore in Q1 FY25, which is in line with the previous year. International orders constituted 49% of the total order inflow of the segment during the quarter.

Further, the segment order book stood at Rs 324,879 crore as on 30 June 2024, with the share of international orders at 28% YoY.

The Energy Projects segment achieved customer revenues of Rs 8,495 crore in Q1 FY25, recording a growth of 27% YoY, mainly due to execution ramp up in international projects in the Hydrocarbon business. International revenues constituted 68% of the total customer revenues of the segment during the quarter.

The segment secured orders valued at Rs 8,792 crore in Q1 FY25, up 21% on YoY basis with receipt of high value orders in the domestic offshore vertical of Hydrocarbon business. International order inflow constituted 22% of the total order inflow during the quarter. The segment order book was at Rs 117,724 crore as on 30 June 2024, with the international order book constituting 76%.

The Hi-Tech Manufacturing segment recorded customer revenues of Rs 1,845 crore during the quarter, up 4% YoY, with improved execution in Precision Engineering & Systems business. International revenues constituted 23% of the total customer revenues of the segment during the quarter.

The segment bagged orders valued at Rs 3,677 crore in Q1 FY25, registering a growth of more than 100% over the previous year, with receipt of a high value order in the Precision Engineering & Systems business. Export orders constituted 8% of the total order inflow of the segment during the quarter. The order book of the segment was at Rs 33,765 crore as on 30 June 2024, with the share of export orders at 7%.

The IT & Technology Services (IT&TS) segment recorded customer revenues of Rs 11,505 crore for the quarter ended 30 June 2024, up 6% YoY, reflective of subdued global macro outlook impacting discretionary IT&TS spends. International billing contributed 92% of the total customer revenues of the segment for the June quarter. The aggregate revenues of the two listed subsidiaries (LTIMindtree and L&T Technology Services) in this segment stood at $1,391 million registered a growth of 4% YoY.

The financial services segment recorded income from operations at Rs 3,664 crore during the quarter, registering a growth of 21% YoY, mainly attributable to higher disbursements in the retail business.

The Development Projects segment reported customer revenues of Rs 1,327 crore for the quarter ended 30 June 2024, up 3% on YoY basis.

Customer revenues of the 'Others' segment in Q1 FY25 was at Rs 1,375 crore registered a de-growth of 37% YoY, primarily due to lower handover of residential units in the Realty business. Export sales constituted 17% of the total customer revenues of the segment during the quarter, majorly relating to industrial valves business. 'Others' segment comprises Realty, Industrial Valves, Construction Equipment & Mining Machinery and Rubber Processing Machinery.

In its outlook, L&T said, '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.'

Larsen & Toubro (L&T) is an Indian multinational engaged in EPC Projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide. A strong, customer'focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.