L & T records a 24% YoY jump in profits after Q3 of FY 2023-24. Here’s what the results say

L & T Q3 results

Q3 results announced

It’s the season of quarterly results as all listed companies announce their performance after the third quarter of the current financial year. L & T also published its results on 30th January, and the numbers were good. Let’s look at how the company performed in the October-November-December 2023 quarter.

L & T Q3 results

  • Profit

Larsen & Toubro recorded a 24% Year-on-Year (YoY) growth in its consolidated net profit, a figure lower than analysts’ estimates. The net profit after the third quarter was Rs.2553 crores. On a quarterly basis, the profit jumped 14.5% from Rs.2229 crores reported in the last quarter.

  • Revenue

The consolidated revenue from operations also saw a jump of 17% YoY to stand at Rs.46,390 crores. Sequentially too, the revenue increased as it was reported at Rs.42,763 crores. Moreover, during the third quarter, 37% of the company's total revenue consisted of international revenues, which stood at Rs.17,317 crores.

  • Operating margin

The company experienced higher costs which reduced the EBITDA margin to 7% from 7.1% reported after the last year’s third quarter.

  • Segment-wise performance 

Almost all the company segments registered positive growth during the quarter. Here’s a look at the segment-wise performance –

segment wise performance
  • Orders

The company’s order book grew 21% YoY as it received new orders worth Rs.60,710 crores. 25% of the total order book consisted of international orders, which stood at Rs.15,294 crores. The consolidated orders were recorded at Rs.3.86 lakh crores, where international orders amounted to 26% of the whole.

What did the management say?

After its results, the company’s management stated that the Indian economy is stable despite the instability in the geopolitical landscape. This instability has resulted in –

  • Reduction of international trade
  • Disruption of the supply chain
  • Volatility in the commodity prices
  • Hike in the interest rates

This has affected the company’s performance. However, the company stated that it had the capacity to rebalance its strategy and approach to benefit from the dynamism in the business environment. With its established excellence in all domains, the company will make the most of emerging opportunities in the market.

How the stock reacted?

On 30th January, the company’s scrip fell 1.75%. Over the last year, the company’s stock has generated a return of 11%, while the returns stood at 50% over the last 5-year period.

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Check out this video for a detailed analysis of L & T's Q3 results


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