L&T beats estimates with Rs 2,493 crore Q1 PAT; board declares Rs 6/share dividend, announces Rs 10,000-crore buyback

L&T Q1 Results: Construction major Larsen & Toubro (L&T) on Tuesday reported a 46.5 per cent year-on-year jump in consolidated net profit to Rs 2,493 crore for the quarter ended June 30, 2023 (Q1FY24). The company's board declared a special dividend of Rs 6 per share and announced a buyback worth Rs 10,000 crore. 

L&T's revenue from operations came in at Rs 47,882 crore for the first quarter of the current financial year, up 34 per cent compared with the corresponding period a year ago, according to a regulatory filing.

The infrastructure conglomerate reported Rs 4,869 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA), up 23 per cent compared with the year-ago period. 

L&T's EBITDA margin — a key measure of profitability — came in at 10.2 per cent as against 11 per cent a year ago. 

Larsen & Toubro beat analysts' estimates on most key parameters. According to Zee Business research, L&T was estimated to report a quarterly net profit of Rs 2,110 crore, revenue of Rs 40,619.3 crore, EBITDA of Rs 4,403 crore and margin of 10.84 per cent. 

The company registered growth across most segments. Revenue growth in infra projects stood at 55.5 per cent on a year-on-year basis, in energy projects at 31.5 per cent, in 'hi-tech' manufacturing projects at 41.8 per cent, in IT and technology services at 14.3 per cent, and in financial services at 2.1 per cent, according to the filing.

Revenue in development projects declined 3.6 per cent.

Special dividend

The L&T board declared a dividend of Rs 6 per share — a 300 per cent payout given the face value of Rs 2 apiece. The company set August 2 as the record date for the dividend. 

The dividend will be paid on or before August 14, it said. 

Share buyback

The board approved a proposal to buy back shares worth up to Rs 10,000 crore. 

L&T shares declined 1.7 per cent to end at Rs 2,562 apiece on BSE ahead of the earnings announcement. The stock finished the June quarter with a gain of 14.3 per cent, outperforming a 10.5 per cent rise in the benchmark Nifty index. 

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