Larsen and Toubro (L&T) Monday reported a 4.6 percent year-on-year (YoY) rise in March quarter consolidated profit at Rs 3,167 crore, beating estimates.
The net profit in the same quarter of previous year stood at Rs 3,025 crore.
Revenues grew 11 percent YoY to Rs 40,678 crore in Q4FY18 from Rs 36,828 crore. Other income was up 5 percent on gains from treasury operations.
Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) was 24.3 percent at Rs 5,390 crore. EBITDA margin for the quarter was 13.2 percent. Staff augmentation for services added 10 percent to costs for FY18.
A Reuters poll of analysts estimated Q4 net profit to drop to Rs 2,994.4 crore YoY.
For FY19, the company expects 12-15 percent growth in revenues and 10-12 percent growth in order inflows. The company expects stable EBITDA margin with an upward bias of up to 25 basis points (bps).
International order inflow for Q4 was at Rs 8,678 crore, while the total order inflow was Rs 49,557 crore. Consolidated order book of the group at the end of FY18 stood at 2.6 lakh crore, slightly lower than the Rs 2.71 lakh crore at the end of December quarter.
Around 57 percent of order inflow came from the infra space, while 10 percent came from the hydrocarbons segment.
The company won fresh orders worth 152,908 crores at the group level during the year, a growth of 7 percent over the previous year.
The board has approved a final dividend of Rs 16 per equity share of Rs 2 face value.
Consolidated revenue in the IT and Tech segment grew to Rs 3,152 crore as compared to Rs 2,549 crore in the same quarter last year.
Development projects revenue grew 21 percent at Rs 1,217 crore against Rs 1,006.5 crore in the Q4 FY17.
In a post result media address, the L&T management said the company can reach 18 percent return on equity (RoE) by FY21. “Implementation of reforms like GST, RERA and the push towards IBC [Insolvency and Bankruptcy Code] are tailwinds,” L&T said, adding, the company has enough orders to sustain its growth trajectory.
International revenues will continue to contribute 32-33 percent of total revenues, the company said.
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