Larsen & Toubro posted an excellent set of numbers for Q1FY24, beating all estimates by a huge margin. Opening 2% higher at Rs.2613, the stock surged on to hit a new 52-week high at Rs.2670, rising more than 4%.
The company, for the first quarter, posted a 46% (YoY) jump in consolidated net profit at Rs.2493 crore on a 33% jump in revenue from operations at Rs.47,882 crore.
Operating profit was up 23% at Rs.4869 crore and margins came in at 11.03% v/s 10.1%.
The Board also approved a share buyback proposal of Rs 10,000 crore – it will buy back 3.33 crore shares or 2.4% of the equity capital, at a maximum price of Rs 3,000/share, which is a 17% premium over yesterday’s close.
The order inflow for the quarter stood at Rs.65,520, up 57%. There is a major uptick in the order inflow and analysts expect this to only get better as major infra building push will happen before the elections next year.
The company is confident about a robust FY24 as it not expects to surpass the current fiscal upper end of the revenue and order inflow guidance but is also looking at revising the guidance upwards for the topline and margin after Dec’23.