L&T Q2 consolidate net profit rises 22.5%

Engineering major Larsen & Toubro (L&T) posted a 22.5% increase in net profit to Rs 2,229 crore, in the quarter ending September 30, 2022 as compared to ₹1819.45 crore in the corresponding quarter of the previous year.

Consolidated revenue came in at Rs 42,763 crore, up 23% as compared to Rs 34,772 crore in the corresponding quarter of the previous fiscal.

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

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

L&T won orders worth Rs 51,914 crore at the group level during Q2, logging a 23% growth over the corresponding quarter of the previous year.

In the post-earnings press conference, Shankar Raman told reporters that markets globally continue to remain “very volatile”. The volatility is mainly due to the ongoing Russia-Ukraine war, depreciating global currency and energy crisis in some countries, he said, but added that 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 various markets across the world. 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,” Shankar Raman said.

In a press statement, the company said during the quarter, it received orders from across segments including public spaces, nuclear power, irrigation, ferrous Metal, health, renewables and refinery sectors.

International orders came in at Rs 17,341 crore during the quarter comprising 33% of the total order inflow.

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

The financial segment recorded income from operations at Rs 3,152 crore during the quarter registering a y-o-y growth of 6%, mainly attributed to higher disbursement in retail business, in line with its strategy of retailisation of the loan book.

The total loan book at Rs 90,098 crore grew by 4% as compared with September 2021 at Rs 86,936 crore, with growth achieved on increased disbursements in the retail portfolio and targeted reduction in defocused businesses, the company said.

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