L&T Q4 profit up 10% to ₹3,987 cr; AM Naik steps down

Engineering, construction, & IT services giant Larsen & Toubro reported 10% year-on-year-growth in net profit for the January-March quarter of 2022-23 at ₹3,987 crore as compared to ₹3,621 crore during the same period last year. The revenue from operations for the said quarter also surged 10% to ₹58,335 crore as compared to ₹52,851 crore in the year-ago period. The company's board in its meeting also announced a dividend of ₹24 per share.

The Larsen & Toubro stock fell 3.13% to ₹2,290.50 in the opening trade today as compared to ₹2366.75 in the previous session. The stock has fallen 3.95% in the past week; 0.48% in the past month; but is up 13.55% in the past six months; and 9.29% in the year-to-date period.

L&T's EBITDA for the said quarter was recorded at ₹6,833 crore vs ₹6,517 crore in the year-ago quarter, an increase of 5%. The company's operational expenses for the said quarter were at ₹51,502 crore as compared to ₹46,334 crore. The share of international revenues during the quarter was 39%.

The order inflow for the quarter ended March 31, 2023 stood at ₹76,099 crore, up 3% YoY. International orders at ₹36,046 crore constituted 47% of the total.

For the full fiscal year 2022-23, the company recorded a total consolidated profit of ₹10,471 crore, registering a robust growth of 21% compared to the previous year.

Larsen & Toubro's consolidated revenues of ₹183,341 crore for the year ended March 31, 2023, recording a healthy y-o-y growth of 17%. The revenue, said L&T, was aided by strong execution of a large order book in the infrastructure projects segment and robust momentum in the IT&TS portfolio.

L&T at the group level received orders worth ₹2,30,528 crore during the year ended March 31, 2023, registering a healthy y-o-y growth of 19%. The international orders at ₹86,523 crore during the year comprised 38% of the total order inflow.

In its outlook for the next fiscal year, L&T said going forward, improved tax collections for the government will support its Capex led growth aspiration. L&T said it'll focus, with cautious optimism, on large project wins, timely execution of its large order book, growth of its services portfolio in the stated glide path. "The company is optimistic about its growth aspirations in the medium term despite a uncertain macro environment and is committed to creation of sustainable value to all its stakeholders."

AM Naik steps down as non-executive chairman

L&T non-executive chairman AM Naik has decided to step down at the end of his tenure on September 30, 2023. The company board in its yesterday meeting decided to confer the status of chairman emeritus on Naik. SN Subrahmanyan has been appointed as chairman and managing director with effect from October 1, 2023. He is currently the chief executive officer and managing director.

Naik has been with L&T for more than 58 years. He said L&T has been his life, and he is immensely proud that he could play a significant part in its growth. "The growth trajectory that the company has charted in the last two to three decades is exemplary. The emphasis we laid on IT and technology services has had a significant positive impact on the profitability of the organisation. I am sure Mr. Subrahmanyan will continue to foster the high growth and entrepreneurial culture at L&T.”

SNS joined the construction business of L&T in 1984 as a project planning engineer after completing a degree in civil engineering and post-graduation in business management. SNS has been at the helm of L&T for 6 years since July 1, 2017, as the CEO & MD.