Larsen & Toubro Ltd. reported third quarter consolidated net profit grew 15% to ₹2,947 crore as compared with ₹2,653 crore in the year earlier period due to better performance of its energy projects and IT services segments aided by better execution at its infrastructure division.
The company for the period ended December 31,2023 reported consolidated revenues of ₹55,128 crore recording a y-o-y growth of 19%, aided by a ramp up in execution of the strong order book in the Projects and Manufacturing portfolio. International revenues during the quarter at ₹24,300 crore constituted 44% of the total revenue, the company said in a regulatory filing.
The company received orders worth ₹75,990 crore at the group level during the quarter registering a growth of 25% on y-o-y basis.
During the quarter, orders were received across various businesses like the Offshore vertical of Hydrocarbon, Solar EPC & Power Transmission, Water Utilities, Buildings & Factories and Minerals & Metals sectors, it said.
International orders at ₹50,562 crore during the quarter comprised 67% of the total order inflow.
The consolidated order book is at ₹4,69,807 crore as on December 31, 2023, with international orders having a share of 39%, it added.
S.N. Subrahmanyan, Chairman and Managing Director said, “We have registered yet another quarter of strong performance, despite the headwinds from a volatile global environment and consequent supply chain constraints.”
“During the quarter we made a foray into fabless semiconductor chip design. Our bold strides in new age sectors, including Digital Platforms, Data Centres, and Green Energy will pivot us into a technology-led conglomerate,” he said.
“Further, we are committed to promoting sustainability by reducing fossil fuel dependence / exposure, tapping renewables opportunities, using recyclable materials, increasing wastewater recycling, integrating ESG into business initiatives, and collaborating with vendors to build a green supply chain,” he added.
“We are currently witnessing improved Capex spends in both our primary geographies of India and Middle East. Despite continued global macroeconomic and geopolitical volatility we remain positive about the investment spends continuing in the medium term,” he further said.
The Infrastructure Projects segment secured order inflow of ₹43,208 crore, during the quarter registering growth of 33% y-o-y basis.
The segment posted customer revenues of ₹27,845 crore, up 27% y-o-y. The EBITDA margin was at 5.5% vis-à-vis 7% recorded in the corresponding quarter of the previous year. “Margin for the quarter reflects continuing cost pressures in a few legacy projects that are now nearing completion,” the company said.
The Energy Projects segment secured orders valued at ₹13,281 crore, registering 47% growth on y-o-y basis.
The segment achieved customer revenues of ₹7,864 crore recording growth of 24% over the corresponding quarter of the previous year.
The EBITDA margin of the segment at 9.7% improved compared to 8.7% over the corresponding quarter of the previous year, mainly on account of job savings in Hydrocarbon and customer claim settlements in the Power business.
IT & Technology Services (IT&TS) segment recorded customer revenues of ₹11,196 crore registering a modest y-o-y growth of 5%, reflecting growth headwinds in the IT&TS sector.
The EBITDA margin for the segment was at 20.7% as compared with 18.9% in the corresponding quarter of the previous year. The improved segment margin reflects better resource utilization and operational efficiencies, the company said.
On future outlook, the company said it would be focused on tapping emerging opportunities both in India and overseas with its proven competence in the domains of engineering, manufacturing, construction, project management and services for profitable execution of its large order book.
