Despite reporting a rise in net profit by 39.5 percent QoQ and 24 percent YoY, the share price of this large-cap stock and one of India’s leading infrastructure company moved down by 6.2 percent on BSE at Rs. 3,269.5 in the trading session of Thursday, compared to its previous closing price of Rs. 3,485.2.
With a market capitalisation of Rs. 4.55 lakh crore, at 11:35 a.m., the shares of Larsen & Toubro Limited were trading in the red at Rs. 3,316, down by 4.85 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Wednesday post-market hours.
The consolidated revenue from operations jumped by 21.6 percent QoQ to Rs. 67,079 crore in Q4 FY23-24 from Rs. 55,153 crore in Q3 FY23-24, while it increased by 21 percent YoY from Rs. 1,83,340.7 crore in FY22-23 to Rs. 2,21,113 crore in FY23-24, facilitated by strong execution of a large order book in the Projects & Manufacturing businesses.
International revenues during the year stood at Rs. 95,086 crore constituted 43 percent of the total revenues largely led by a ramp-up in the execution of multiple international projects.
The company also witnessed a rise in the net profit by 24 percent YoY from Rs. 12,530.62 crore in FY22-23 to Rs. 15,547.1 crore in FY23-24, while on a quarter-on-quarter basis, PAT increased by nearly 39.5 percent from Rs. 3,592.84 crore in Q3 FY23-24 to Rs. 5,013.2 crore in Q4 FY23-24.
L&T received orders worth Rs. 3,02,812 crore at the group level during the year ended March 31, 2024, registering a robust year-on-year growth of 31 percent. In contrast, international orders at Rs. 1,63,112 crore during the year comprised 54 percent of the total order inflow with higher ordering momentum witnessed in Gulf Cooperation Council (GCC) countries.
The order inflow for Q3 FY23-24 stood at Rs. 72,150 crore, registering a marginal de-growth of 5 percent over the corresponding quarter of the previous year.
The consolidated order book of the group as on March 31, 2024, is at Rs. 4.75 lakh crore registering a growth of 20 percent over the previous year, with the share of international orders at 38 percent.
Further, the company’s Board has recommended a final dividend of Rs. 28 per equity share of face value of Rs. 2 each for the financial year ended on March 31, 2024.
CLSA, one of the well-known foreign equity brokerages in China focusing on asset management, alternative investments, corporate finance, etc., has retained its “buy” recommendation on the stock, but reduced its target price from Rs. 4,260 to Rs. 4,151, indicating a 25 percent potential upside.
For FY24–25, L&T anticipates growing its topline by 15 percent over the previous year and securing 10 percent more orders than it did in FY23–24. The guidance estimate among analysts varied from 9-9.5 percent for the year, however, the company reduced its margin guidance to be at 8.25 percent for FY24–25.
The stock has delivered positive returns of nearly 39.3 percent in the last one year, while around 9.3 percent in the last six months. However, so far in 2024, the company has given about 6.2 percent of negative returns.
Larsen & Toubro Limited is an Indian multinational engaged in Engineering-Procurement-Construction (EPC) Projects, Hi-Tech Manufacturing and Services.
Written by Shivani Singh
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