Larsen & Toubro Q4 Results Update

Larsen & Toubro Q4 Results Update

Quarterly Results
by Shreya Anaokar Last Updated: May 20, 2022, 04:47 PM IST

On 12th May 2022, Larsen & Toubro announced its quarterly results for the last quarter of FY2022.

Key Highlights:

- Larsen & Toubro achieved Consolidated Revenues of ₹ 156,521 crores for FY22 with a growth of 15% YoY with strong execution in project business aided by continuing growth momentum in the IT&TS portfolio. International revenues during the year at ₹ 55,783 crore constitute 36% of the total.

- For Q4FY22, the Consolidated Revenues at ₹ 52,851 crores with a YoY growth of 10%. International sales during the quarter at ₹ 17,550 crores constituted 33% of the total revenue

- For FY22, the Consolidated Net PAT (excluding exceptional items and discontinued operations) at ₹ 8,572 crore registered a robust growth of 23%. 

- The Consolidated Net PAT for Q4FY22 at ₹ 3,621 crore, registered a growth of 10% QoQ.

- The Company bagged orders worth ₹ 73,941 crores during Q4FY22, registering a strong growth of 46% over Q4FY21, with the Infrastructure segment booking a mega order from the Middle East. The International orders at ₹ 32,241 crores during the quarter comprised 44% of the total order inflow. 

 

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Infrastructure Segment:

- The Infrastructure segment secured order inflow of ₹ 93,515 crores, during FY22, with a drop of 9% YoY which had receipt of the large value Mumbai – Ahmedabad High-Speed Rail orders. The segment order book stood at ₹ 260,624 crores for FY2022, with the share of international orders at 22%.

- The segment recorded customer revenues of ₹ 29,727 crores for Q4FY22, registering growth of 13% YoY.

- International revenues constituted 25% of the total customer revenues of the segment during the quarter. 

- The EBITDA margin of the segment for FY2022 was at 8.2% vis-à-vis 8.5% recorded in FY2021. The drop in margin is primarily due to unreasonably high commodity prices.

 

Hydrocarbon Segment:

- The Hydrocarbon Segment secured orders valued at ₹ 30,912 crores during FY2022, registering a strong growth of 74% YoY with the receipt of mega orders from the Middle East, both in the Offshore and Onshore verticals. International order inflow constituted 79% of the total order inflow of the segment.

- The segment order book was at ₹ 56,398 crores for FY2022, with the international order book constituting 60%. 

- The segment posted customer revenues of ₹ 5,237 crores during Q4FY22, recording a marginal decline of 3% YoY. International revenues had a share of 31% of the total customer revenues for the quarter. 

- The EBITDA margin of the segment at 8.7% for FY2022 declined to 9.2% over FY2021, reflecting input cost inflation and change in the composition of jobs amongst the sub-segments. 

- During the quarter, L&T Hydrocarbon Engineering Limited was merged with the Parent entity on the appointed date of April 01, 2021. 

 

Power Segment:

- The Power segment for FY2022, secured orders of ₹ 1,360 crores registering a growth of 39% compared to FY2021. 

- The order book of the segment was at ₹ 8,901 crores for FY2022, with the share of international orders at 6%. 

- The segment recorded customer revenues of ₹ 1,480 crores for Q4FY22, recording a growth of 22% over Q4FY21.

- The segment EBITDA margin for FY2022 was at 3.9%, lower compared to 4.6% in the previous year, due to the mix of jobs under execution.

 

Heavy Engineering Segment:

- The Heavy Engineering segment secured orders valued at ₹ 3,223 crore during FY2022 registering a decline of 10% YoY due to deferral of targeted prospects.

- The order book of the segment was at ₹ 4,714 crores for FY2022, with the share of export orders at 39%. 

- For FY2022, customer revenues at ₹ 2,724 crores, remained flat over the previous year as new orders in the portfolio are still in the early stage of execution. 

- The EBITDA margin of the segment at 19.0% for FY2022 declined compared to 19.7% reported in the previous year, the drop is primarily due to lower export incentives. 

 

Defence Engineering Segment:

- The Defence Engineering segment secured orders valued at ₹ 8,079 crores during FY2022, representing substantial growth over the previous year with the receipt of a few large value domestic orders. 

- The order book of the segment was at ₹ 12,537 crores for FY2022, with export orders constituting 4% of the total order book. 

- For FY2022, the customer revenues at ₹ 3,218 crores registered a YoY decline of 5% over the previous year with tapering off large value orders under execution, coupled with delayed receipt of new awards. 

- The EBITDA margin for FY2022 at 20.2% was lower when compared to 22.2% in FY2021. The margins in the previous year had the benefit of the release of cost savings in some key projects that got completed. 

 

IT & Technology Services (IT&TS) Segment:

- The segment recorded customer revenues of ₹ 32,256 crores for FY2022, registering a YoY growth of 27% reflecting the continuing growth momentum in the sector with the surge in demand for technology-focused offerings.

- The segment recorded customer revenues of ₹ 8,761 crores for Q4FY22, recording QoQ growth of 4% & YoY growth of 30%. 

- The EBITDA margin for the segment at 23.6% for FY2022, is in line with the previous year at 23.5% as gains through better resource utilization got offset by higher employee costs.

 

Financial Services Segment:

- The segment recorded income from operations at ₹ 11,971 crores for FY2022, registering a decline of 11% YoY, mainly attributed to the targeted reduction in the overall loan book. 

- The segment recorded income from operations at ₹ 2,963 crores during Q4FY22, registering a YoY decline of 12%. 

- The segment EBIT for FY2022 increased to ₹ 1,470 crore as compared to ₹ 1,286 crore in FY2021 due to lower credit costs.

 

Developmental Projects Segment:

- The segment recorded customer revenues of ₹ 4,368 crores registering a growth of 21% over the previous year, driven by a higher PLF in the Nabha Power plant and a gradual increase in metro ridership in Hyderabad. 

- For Q4FY22, the customer revenues at ₹ 1,096 crores, recording a marginal decline of 2%YoY. 

- The segment EBIT for FY2022 registers a loss of ₹ 231 crores.

 

Other Segment:

- Other segment comprises Realty, Construction & Mining Machinery, Rubber Processing Machinery, etc. 

- Customer revenues for FY2022 at ₹ 5,988 crores registered a growth of 2% over the previous year. 

- The customer revenues of this segment during Q4FY22 at ₹ 1,825 crores, is in line with the previous year. 

- During FY2022, the segment EBITDA margin at 17.4%, declined compared to 21% in FY2021, since it had the benefit of gaining on the sale of the commercial property in the Realty business. 

 

The Board of Directors has recommended a final dividend of ₹ 22 per equity share for the approval of shareholders, an increase of 22% per share over the previous year.

 

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. She has her own website where she posts blogs related to Personal and Behavioral Finance.

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