L&T Q3 Results: Revenue rises over 10%, margin expands; profit hit by labour code costs

Larsen & Toubro (L&T) delivered a mixed performance for the December quarter, with profit and revenue coming in below Street expectations, largely due to a one-time impact from labour code-related expenses.

Net profit declined 4.3% year-on-year to ₹3,215 crore, significantly lower than the CNBC-TV18 poll estimate of ₹4,380 crore. Revenue rose 10.5% to ₹71,449 crore, but also missed estimates of ₹73,691 crore.

Operating performance remained steady, with EBITDA increasing 18.6% year-on-year to ₹7,416 crore, marginally above estimates. EBITDA margin improved to 10.4%, compared with 9.67% a year ago, aided by better execution and operating leverage.

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The company reported an exceptional labour code impact of ₹1,344 crore during the quarter, which weighed on bottom-line performance.

Ahead of the earnings announcement, shares of Larsen & Toubro closed marginally higher on the NSE.