Larsen & Toubro strong performance in Q4 FY24

Larsen & Toubro said that geopolitical uncertainties, volatility in global financial markets, geoeconomic fragmentation, continuing sea route trade troubles, and severe climate events threaten the outlook for 2024-25.

Larsen & Toubro (L&T) demonstrated robust financial performance in the fourth quarter of FY24, with a notable surge in net profit and revenue from operations. Here are the key highlights from their quarterly and full-year results:

Q4 and FY24 Financial Highlights:

• Consolidated net sales reached Rs 67,079 crore, marking a significant 15% increase compared to the same period last year.
• Net profit surged by 10% to Rs 4,396 crore in Q4 FY24, in line with market estimates.
• The company reported a consolidated net sales growth of 21% in FY24, totaling Rs 2.21 lakh crore, compared to nearly Rs 1.83 lakh crore in the previous year.
• FY24 profit after tax witnessed a substantial jump of 25%, reaching Rs 13,059 crore compared to Rs 10,471 crore in FY23.

Order Inflows:

• Order inflow for Q4 FY24 stood at Rs 72,150 crore, experiencing a slight de-growth of 5% compared to the corresponding quarter of the previous year.
• International orders constituted 35% of the total order book, amounting to Rs 25,217 crore.
• The order inflow for FY24 surged by 31% to Rs 3 lakh crore, reflecting strong growth momentum compared to Rs 2.3 lakh crore in FY23.
• L&T’s consolidated order book stood at Rs 4,75,809 crore as of March 31, 2024, representing a significant growth of 20% over the previous year.

Outlook:

• L&T anticipates India’s economic growth momentum to persist in the medium term, driven by both public and private capital investment.
• However, the company foresees a slowdown in order inflows from international markets, partly due to the US Presidential elections in November 2024 contributing to economic volatility.
• Fragility in the UK and Europe economies, concerns regarding a real estate bubble in China, ongoing conflicts in the Middle East, and disruptions in the Red Sea could adversely impact economic revitalization.
• Geopolitical tensions, volatility in international financial markets, geoeconomic fragmentation, trade disruptions, and extreme weather events pose risks to the outlook for 2024-25.

In summary, L&T’s strong financial performance in Q4 FY24, coupled with a positive outlook for India’s economic growth, demonstrates resilience amid global challenges. However, cautious optimism is warranted due to potential risks in international markets and geopolitical uncertainties.