Larsen & Toubro’s (L&T) Chief Financial Officer R Shankar Raman said that the engineering major has increased its workforce by 10 per cent in the past year, adding close to 8,000 people in 2023-24, and plans to keep expanding its workforce till 2025-26.
Raman explained that despite a slowdown in order inflow seen in international orders in the fourth quarter of 2023-24 and expectation of a slowdown in domestic order inflows in the first and second quarter of 2024-25, L&T will continue to hire employees to execute its ever-growing order book, worth Rs 475,809 crore at the end of March 31, 2024.
“We will continue to hire people till 2025-26 so that as a company we are well prepared to plan out the next five years of our journey and to ensure that our current order book is executed in time,” Shankar Raman said in a post earning conference call after the company declared its Q4FY24 earnings.
He added that since around 38 per cent of L&T’s order book is made up of orders from international clients, the company will continue expanding its international employee base.
Shankar Raman also said that L&T’s plans to hire more employees has also impacted the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin in 2023-24, as the company had to pay a premium for foreign employees.
L&T Q4 Results
L&T on May 8 reported a consolidated net profit for the quarter ended March 2024 at Rs 4,396 crore, up 10 per cent compared to Rs 3,987 crore in the same quarter last year and Rs 3,621 crore in the same quarter in 2022-23.
Its revenue from operations for the quarter stood at Rs 67,079 crore, registering a growth of 15 per cent from Rs 58,335 crore a year ago and Rs 52,851 crore in the same quarter in 2022-23, the company said in an exchange filing. The share of international revenues during the quarter was 45 per cent.
The Board has also recommended a final dividend of Rs 28 per share of the face value Rs 2 each for the financial year ended March 2024. The share of international revenues during the fourth quarter was 45 per cent.
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