L&T: L&T Q2 net soars 23%, sales beat estimates

Mumbai: Engineering major Larsen & Toubro (L&T) has reported a 22.5% year-on-year increase in quarterly net profit, helped by healthy growth in sales and orders. Net profit for the quarter ended September 30 stood at ₹2,229 crore compared with ₹1,819.5 crore a year ago, the company said on Monday. Consolidated revenue was up 23% at ₹42,763 crore.

Higher-than-expected sales growth was driven by execution tailwinds in the infrastructure projects segment and sustained growth momentum in its IT & TS (technology services) portfolio.

“Insofar as profit growth is concerned, it follows the revenue growth of 23% and the margin has been stable at 11.5% as compared to the previous year,” said R Shankar Raman, chief financial officer, L&T. “So we’ve been able to manage the cost and have reported profit growth.”

L&T Q2 Net Soars 23%, Sales Beat Estimates

L&T won orders worth ₹51,914 crore at the group level during Q2, logging a 23% growth over the corresponding quarter of the previous year. In a post-earnings press conference, Raman told reporters that markets globally continue to remain “very volatile”, mainly due to the ongoing Russia-Ukraine war, depreciating global currency and energy crisis in some countries. But, he said, the Indian market has been “showing resilience”.

“There is also a lot of chatter around a possible recession and the likelihood of the recession having an impact on the markets across the world,” Raman said. “While in this mode, I think we find the sentiments in India far more positive, and possibly a reflection of the resilience of the market in holding up well so far.” In a statement, the company said that during the quarter, it got orders from across segments, including public spaces, nuclear power, irrigation, ferrous metal, health, renewables and refinery sectors. International orders were worth ₹17,341 crore and accounted for 33% of total order inflow.

The group’s consolidated order book was at ₹372,381 crore as of September-end, with international orders having a share of 28%.

The financial segment recorded income from operations at ₹3,152 crore, registering 6% YoY quarterly growth, which was attributed mainly to higher disbursement in retail business, in line with its strategy of retailisation of the loan book. The total loan book at ₹90,098 crore grew 4% as compared with September 2021, with growth achieved on increased disbursements in retail portfolio and targeted reduction in defocused businesses, the company said.

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