Larsen & Toubro (L&T) reported a marginal decline in fourth-quarter profit on Tuesday, hurt by an exceptional gain in the year-ago period, while strong order inflows lifted revenue and its order book to record levels.
The infrastructure-to-engineering conglomerate said consolidated net profit fell 3 per cent year-on-year to Rs 5,326 crore for the January-March quarter, even as revenue from operations rose 11 per cent to Rs 82,762 crore.
Management said the profit decline was largely due to the absence of an exceptional gain booked last year, adding that the ongoing conflict in West Asia had only a limited impact during the quarter.
L&T secured consolidated order inflows of Rs 89,772 crore in the quarter across sectors including buildings, roads, urban transport, power transmission and hydrocarbons. Its consolidated order book stood at Rs 7.40 lakh crore as of 31 March, up 28 per cent from a year earlier, with international orders accounting for 52 per cent.
The board recommended a final dividend of Rs 38 per share, subject to shareholder approval.
For the full year ended 31 March, L&T reported a 7 per cent rise in consolidated net profit to Rs 16,084 crore, while revenue increased 12 per cent to Rs 2.85 lakh crore. Annual order inflows grew 22 per cent to Rs 4.35 lakh crore.
Chairman and Managing Director SN Subrahmanyan said the company had divested its entire stakes in Nabha Power Ltd and L&T Metro Rail (Hyderabad) Ltd as part of its strategy to exit the concessions portfolio, with the transactions expected to close by June 30.
Looking ahead, Subrahmanyan said L&T expects the West Asia conflict to weigh on performance in the first half of fiscal 2026-27 due to potential supply-chain disruptions and higher input costs. The company forecast revenue growth of 10-12 per cent and stable margins for FY27.
In segment-wise performance, the core infrastructure business secured orders worth Rs 43,477 crore in the quarter, up 26 per cent from a year earlier, with international orders forming 67 per cent of the inflows. The energy projects segment saw a 34 per cent drop in quarterly order inflows to Rs 21,296 crore due to a high base, while the hi-tech manufacturing segment reported a 24 per cent decline as some orders were deferred.
The IT and technology services segment posted a 13 per cent rise in customer revenues to Rs 14,078 crore, and the financial services arm recorded a 22 per cent increase in income from operations to Rs 4,669 crore.
L&T said the global environment remains challenging amid geopolitical disruptions, but India’s services and digital economy are expected to remain key growth drivers, supported by fintech expansion, cloud adoption, AI-enabled services and the rise of global capability centres. |
