L&T Q4 net improves 6% even as margins narrow

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₹4,396 crore, against Bloomberg analysts' estimates of ₹4275 crore. Revenue for the quarter grew 15% to ₹67,079 crore. Earnings before interest, tax, depreciation and amortization (Ebitda) was 6% higher at ₹7,234 crore.

Ebitda margin, however, narrowed by nearly a percentage point to 10.8%, thanks to cost inflation and higher capital expenditure. Despite order inflows thinning by 5% in the last quarter ahead of general elections, for FY24 as a whole, the company recorded a 31% growth in order inflows to cross ₹3 trillion. “Normally, Q4 sees the most order inflows, almost 40% of the annual orders.

But we knew there were elections this year, so we pushed hard in the first three quarters and got 75% of the orders that we were expecting during the year," R. Shankar Raman, chief financial officer, said in a media call. Consolidated order book stood at ₹4.8 trillion as of 31 March, 20% more than a year ago.

More than a third of these orders were from international markets. Profit for the full year surged 25% to ₹13,059 crore, while revenue grew 21% to ₹2.2 trillion. Ebitda for the year was 13% higher at ₹23,494 crore with an Ebitda margin of 10.6%, down 69 basis points.

Also read: L&T Q4 Results: Net profit rises 10.3% to ₹4,396 crore, dividend declared; 5 key highlights “A combination of cost inflation, time overrun, delayed settlement of claims and investment for growth account for the decline in the margins of the infrastructure segment and the margins of the company overall," Shankar Raman said. Margins in the infrastructure projects segment narrowed from 7% in FY23 to 6.2% in FY24. Shankar Raman said that the company expects FY25 order intake to grow by 10% on the high base of FY24.