L&T Q4 net increases 10% to Rs 3,621 cr, firm declares dividend of Rs 22

Engineering giant Larsen & Toubro (L&T) on Thursday said its consolidated net profit (attributable to owners) rose nearly 10% year-on-year to Rs 3,621 crore for the quarter ended March 31, 2022, amid higher fuel and commodity prices. Net profit before exceptional items, but from continuing operations, stood at Rs 4,007 crore, a growth of 13.3% over the year-ago period.

Consolidated revenue for the quarter rose 10% versus last year to Rs 52,851 crore, marginally below street estimates.

A Bloomberg consensus estimate had pegged revenue and net profit for the quarter at Rs 53,018 crore and Rs 3,483 crore respectively.

The company, which has a presence across infrastructure, hydrocarbons, power and heavy engineering among other segments, bagged orders worth Rs 73,941 crore in Q4, a growth of 46% over last year. International orders contributed 44% to the total order inflow, it said, with the infra segment booking a huge order from the Middle East.

Segment-wise, the infrastructure vertical got Rs 45,054 crore in orders. While the hydrocarbon division received Rs 7,402 crore in orders, power got Rs 207 crore in orders, heavy engineering got Rs 720 crore and defence engineering got Rs 5,377 crore in orders in Q4.

L&T admitted that volatility in the price of crude oil and other commodities owing to geopolitical uncertainties was pushing up input prices.

"The resultant supply chain disruptions could pose a threat to the growth plans of the country in the short-term," it said.

Predictably, earnings before interest tax depreciation and amortisation (Ebitda) margins weakened in all segments due to cost pressures. The company also said that delayed claim certification in projects had hurt margins.

The overall Ebitda margin fell to 12.3% in Q4 versus 13.3% a year ago. Infrastructure segment margins were impacted by nearly 230 basis points to 9.2 percent from 11.5% a year ago. And hydrocarbon segment margins fell 9.7% from 12.5% a year ago.

L&T's board of directors recommended a final dividend of Rs 22 per share. On Thursday, L&T’s stock price was down 3%, closing trade at Rs 1,524.35 per share on the BSE.

The company said that it continued to focus on winning targeted orders and efficient execution of its large order book. It said that a robust order book, strong balance sheet, a well-diversified business portfolio and proven execution capabilities would enable the company to steer through the current challenging environment.