L&T Q2 profit jumps 45% to ₹3,223 cr

Net profit of construction giant Larsen & Toubro (L&T) surged 45% year-on-year to ₹3,223 crore for the quarter ended September compared with ₹2,229 crore in the year-ago quarter.

L&T achieved consolidated revenues of ₹51,024 crore for the quarter ended September, recording a year-on-year growth of 19%, primarily aided by improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio.

International revenues during the quarter at ₹21,898 crore constituted 43% of the total revenue.

The company received orders worth ₹89,153 crore at the group level during the quarter ended September 30, 2023, registering a robust growth of 72% on a yearly basis. During the quarter, orders were received across diverse segments like onshore verticals of the Hydrocarbon business, Urban Transit systems, Transmission & Distribution as well as Residential & Commercial Space. International orders at ₹59,687 crore during the quarter comprised 67% of the total order inflow.

The consolidated order book is at ₹4,50,734 crore as on September 30, 2023, with international orders having a share of 35%.

“Our strong operating and financial performance this quarter exhibits the resilience of the Company’s business model despite the ongoing volatile geo-political situation. All our businesses – Projects, Manufacturing and Services have grown. During the quarter, we have received the highest ever order inflows in the history of the company,” says S.N. Subrahmanyan, chairman and managing director, L&T.

“In the near term, we remain cautiously optimistic, considering the recent geopolitical developments. However, we do expect sustained buoyancy of Services and Indian Government’s thrust on capex to continue,” says Subrahmanyan.

The Infrastructure Projects segment secured order inflow of ₹27,990 crore, during the quarter ended September 30, 2023, registering growth of 12% y-o-y basis on receipt of some large value orders across the various sub-segments. International orders at ₹6,775 crore constituted 24% of the total order inflow of the segment during the quarter.

The Energy Projects segment secured orders valued at ₹40,141 crore during the quarter ended September 30, 2023, registering a substantial growth y-o-y basis with receipt of two ultra-mega international orders in the Onshore vertical of Hydrocarbon business. The hydrocarbon business of Larsen & Toubro (L&T) secured a letter of intent for an ‘ultra-mega’ onshore project from a client in the Middle East. A project worth ₹15,000 crore or more is classified as ‘ultra-mega’ project by L&T.

“This is a huge order that will not only strengthen our balance sheet but also provides impetus to our demonstrated credentials in the Hydrocarbon EPC space,” Subrahmanyan.

The recent conflict in the Middle East has raised concerns about the potential increase in crude prices that can worsen the already fragile global economic situation, as the region is a crucial supplier of energy and a key shipping gateway to global trade. Despite this, L&T remains optimistic around fresh project awards in Oil & Gas, industrialisation and energy transition projects in the GCC (Gulf Cooperation Council) region.