L&T Q4 FY22 Results: Reports profit below estimates

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L&T Q4 FY22 Earnings

Profit rise: The net profit of the company increased 9.9% YoY to Rs 3,620.69 crore in the quarter ending March. Sequentially, the profit increased by more than 50% from Rs 2,055 crore. However, the numbers were below the analyst estimate of Rs 3,950 crore.

Revenue rises: Consolidated revenue from operations increased by 10% YoY to Rs 52,851 crore. Sequentially, the revenue was up from Rs 39,563 crore. The revenue from international sales during the quarter stood at Rs 17,550 crore and constituted 33% of the total revenue. The revenue is in line with analysts' expectations of Rs 53,100 crore. 

Operating margins: The operating margins for the company declined marginally from 12.02% in Q3FY21 to 11.45% in Q3FY22. Sequentially, it was flat and came down 4 bps from 11.49%.  

Higher-order inflows: The company received fresh orders worth Rs 73,941 crore in Q4FY22. It was higher than the previous quarter’s fresh orders of Rs 50,359 crore. The consolidated value of the order book stood at Rs 3.58 lakh crore. The Infrastructure segment booking a mega order from the Middle East. The International orders at Rs 32,241 crore during the quarter comprised 44% of the total order inflow. 

Segment Wise Performance: Segment-wise, it was a mix of some growth and declines. The Infrastructure segment saw sales rise 44% on year to Rs 45,054 crore. The segment recorded customer revenues of Rs 29,727 crore for the quarter ended March 31, 2022, registering yoy growth of 13%. 

The Power segment reported good growth YoY with revenues of Rs 1,480 crore for the quarter ended March 31, 2022, a growth of 22% over the corresponding quarter of the previous year. 

The hydrocarbon segment, which is the third-biggest contributor to revenues, posted customer revenues of Rs 5,237 crore during the quarter ended March 31, 2022, recording a marginal decline of 3% YoY. Heavy Engineering Segment posted customer revenues of Rs 869 crore for Q4FY22 recording a YoY decline of 13%.

Outlook: The company has plans to invest in new areas of green energy. Aggressive plans are on to unlock the value of its current investment in a few non-core areas such as the concessions space. It will continue to focus on winning targeted orders in its EPC space, efficient execution of its large order book, and capturing the growth momentum in the IT & TS portfolio. 

Management Commentary: "A robust order book, strong balance sheet, a well-diversified business portfolio, and proven execution capabilities enable the Company to steer through the current challenging environment while retaining its leadership position," L&T said.

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