Closing the first quarter of FY24 with higher profit, engineering major Larsen & Toubro Ltd also announced a share buy back, declaration of a special dividend, investment of Rs 506 crore in a subsidiary, and acquisition of joint venture partner’s stakes.
According to L&T, it closed Q1FY24 with a standalone net profit of Rs 1,792.36 crore (against Q1FY23's Rs 911.22 crore) on a total income of Rs 27,788.77 crore (Rs 20,779.54 crore).
At their meeting held on Tuesday, the company's Board of Directors approved buyback of 2.4 per cent of fully-paid equity shares or 3,33,33,333 shares with a face value of Rs 2 for a maximum price of Rs 3,000 per share for cash.
The aggregate consideration will be Rs 10,000 crore.
The Board also approved a special dividend of Rs 6 per equity share on face value of Rs 2 each, for Financial Year 2023-24.
According to L&T, the Board has approved additional investment of Rs 506 crore in its subsidiary L&T Energy Green Tech Ltd, to be made either by subscribing to equity or preference shares or by way of inter-corporate deposits or company guaranteed debt or a combination of these and will be done at "arm's length".
As to the rationale, L&T said it proposes to consolidate various arms of the green energy business such as manufacturing and EPC of the green hydrogen value chain & its derivatives. L&T Energy Green Tech shall hold investments in various entities for electrolyser manufacturing and green energy business.
The Board also approved the acquisition of joint venture partner’s 40 per cent stakes in L& T Sapura Offshore Private Ltd for Rs 40,000 crore.
For the period under review, L&T on a consolidated basis logged a total income of Rs 49,027.93 crore (Rs 36,547.92 crore) and a net profit of Rs 2,493 crore (Rs1,702.07 crore).
The company received orders worth Rs 65,520 crore at the group level during the quarter ended June 30, 2023, registering a strong y-o-y growth of 57 per cent.
During the quarter, orders were received across diverse segments like rail, renewables, rural water supply, transmission & distribution, IT & office space, and onshore & offshore verticals of the hydrocarbon business.
International orders at Rs 27,646 crore during the quarter comprised 42 per cent of the total order inflow. The consolidated order book of the group is at Rs 412,648 crore as on June 30, 2023, with international orders having a share of 29 per cent.
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