Promises
2 promises
Promise Tracker
0 delivered, 0 close, 2 missed.
View Promises →
Larsen & Toubro Limited — Q3 FY24
L&T reported a robust Q3 FY24 with group revenue of ₹55,100 crore (+19% YoY) and recurring PAT of ₹2,900 crore (+20% YoY).
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
L&T reported a robust Q3 FY24 with group revenue of ₹55,100 crore (+19% YoY) and recurring PAT of ₹2,900 crore (+20% YoY). Order inflows surged 25% YoY to ₹76,000 crore, driven by mega Middle East hydrocarbon and renewable EPC wins, pushing 9-month inflows past full-year FY23 levels. The order book reached a record ₹4.7 trillion (+22% YoY). However, EBITDA margin contracted 50bps to 10.4% due to job mix and legacy project cost pressures in the Projects & Manufacturing (P&M) segment, where margins fell to 7.6% (vs 8.5% YoY). Management revised FY24 guidance: order inflow growth to 20%+ (from 12%), revenue growth to high-teens, but P&M margin guidance trimmed to 8.25%-8.5% (from 8.5%-9%) as new job margin recognition slips into FY25. Net working capital improved to 16.6% of sales. Key risk: domestic ordering may slow ahead of general elections, while Middle East exposure (39% of order book) faces geopolitical uncertainty.
L&T ने तीसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कुल कमाई ₹55,100 करोड़ रही, जो पिछले साल से 19% ज़्यादा है। मुनाफा ₹2,900 करोड़ (+20%) हुआ। नए ऑर्डर ₹76,000 करोड़ (+25%) मिले, खासकर मिडिल ईस्ट के तेल-गैस और रिन्यूएबल एनर्जी प्रोजेक्ट्स से। अब तक 9 महीने में पिछले पूरे साल से ज़्यादा ऑर्डर आए। कुल ऑर्डर बुक ₹4.7 लाख करोड़ का रिकॉर्ड है। मुनाफे की दर (EBITDA मार्जिन) थोड़ी घटकर 10.4% रही, क्योंकि कुछ पुराने प्रोजेक्ट्स की लागत बढ़ी। कंपनी ने अनुमान बदला: अब ऑर्डर ग्रोथ 20%+ (पहले 12%), कमाई ग्रोथ 15-19% रहेगी। लेकिन प्रोजेक्ट्स सेक्शन का मार्जिन घटकर 8.25%-8.5% रह सकता है। खतरा: चुनाव से पहले देश में ऑर्डर धीमे पड़ सकते हैं, और मिडिल ईस्ट में भू-राजनीतिक अनिश्चितता है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Domestic ordering slowdown ahead of elections
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Order Inflows (Q3)
₹76,000 crore
+25% YoY
Group order inflows for Q3 FY24, driven by large Middle East hydrocarbon and renewable EPC orders.
Order Book
₹4.7 trillion
+22% YoY
Record order book as of Dec '23, with 61% domestic and 39% international.
International Order Share (P&M Q3)
67%
+55pp YoY
Share of international orders in Projects & Manufacturing inflows surged from 12% in Q3 FY23.
NWC to Sales Ratio
16.6%
-240bps YoY
Net working capital to sales improved significantly, reflecting better collections and working capital discipline.
What Changed vs Last Quarter
NEW
Order inflow growth of 20%+ for FY24
Revised upward from earlier 12% guidance, driven by strong 9-month inflows and robust prospects pipeline of ₹6.27 trillion.
NEW
Revenue growth in high-teens for FY24
Revised upward from earlier 15% guidance, supported by strong execution momentum and large order book.
NEW
P&M EBITDA margin band of 8.25%-8.5% for FY24
Trimmed from earlier 8.5%-9% band due to postponement of margin recognition on new jobs into FY25.
NEW
NWC to sales ratio around 16.6% (±30bps) for FY24
Revised from 16%-18% band, reflecting sustained working capital discipline.
DROPPED
Order inflow and revenue to outperform initial guidance
Management expects to exceed the initial FY24 guidance of 10-12% order inflow growth and 12-15% revenue growth, but keeps guidance open-ended due to geopolitical uncertainties.
DROPPED
P&M margin guidance revised to 8.5%-9%
Projects & manufacturing EBITDA margin for FY24 is now expected in the range of 8.5%-9%, down from the initial 9% guidance, due to delayed margin recognition on new jobs.
DROPPED
NWC to sales ratio guidance unchanged at 16%-18%
Net working capital to revenue ratio for FY24 is expected to remain in the 16%-18% range, supported by continued focus on collections.
DROPPED
Margin trajectory to improve from FY25
Management expects margins in the projects & manufacturing portfolio to improve from the next financial year onwards, as legacy jobs conclude and new jobs ramp up.
NEW RISK
Domestic ordering slowdown ahead of elections
Management acknowledged that general elections (Apr-May 2024) could temporarily slow public capex and domestic order inflows.
NEW RISK
Margin recognition delay on new projects
Management indicated that multiple new jobs in ramp-up stage may not cross margin recognition threshold by FY24 end, pushing margin improvement to FY25.
NEW RISK
Execution risk in Middle East fixed-price contracts
Large fixed-price contracts in Middle East require timely execution to realize bid margins; any delays could compress margins.
RISK GONE
Margin pressure from legacy EPC jobs
Legacy COVID-impacted jobs are compressing infrastructure margins (5.4% in Q2 vs 6.6% YoY). Management expects these to conclude by FY24 end, but any delay could further pressure margins.
RISK GONE
Execution risk on ultra-mega orders
Analysts questioned the margin profile of the two ultra-mega hydrocarbon orders. Management acknowledged they are fixed-price contracts and declined to provide margin expectations, raising uncertainty.
RISK GONE
Labor availability for specialized projects
While management downplayed current labor shortages, they admitted that securing skilled labor for complex projects (coastal roads, high-speed rail, underground metro) is becoming challenging.
Fast read
Guidance and risk preview
Revised upward from earlier 12% guidance, driven by strong 9-month inflows and robust prospects pipeline of ₹6.27 trillion.
Management acknowledged that general elections (Apr-May 2024) could temporarily slow public capex and domestic order inflows.
View Risks →