L&T Q2 results: Net profit rises 45% to Rs 3,223 cr

Larsen & Toubro ltd reported 45% jump in consolidated net profit at Rs 3,223 crore for the quarter ending September 30, 2023, helped by strong demand in its mainstay infrastructure projects segment. It reported consolidated net profit of Rs 2,229 crore in the year-ago period. 

The infrastructure company's revenue from operations rose 19% to Rs 51,024 crore in Q2FY24 as against Rs 42,763 crore in the year-ago period. 

The company said it saw "improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio" in the September quarter. International revenues during the quarter at Rs 21,898 crore constituted 43% of the total revenue.

The company received orders worth Rs 89,153 crore at the group level during the quarter ended September 30, 2023, registering a robust growth of 72% on y-o-y basis. International orders at Rs 59,687 crore during the quarter comprised 67% of the total order inflow.

S N Subrahmanyan, Chairman and Managing Director said: “Our strong operating and financial performance this quarter exhibits the resilience of the Company’s business model despite the on-going 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. This shows the faith our customers place on us and is a reflection of our capability to perform and deliver projects on time. The Company now tops the list of international EPC Contractors working in the MENA region in terms of value for projects under execution. This is a testament to our capabilities as a diversified conglomerate present across various geographies.

"The Company has successfully completed the first ever Buyback of Equity Shares during the quarter, in alignment with our long-term Lakshya 2026 plan to enhance shareholder value. 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.”

On a cumulative basis, the order inflow for the half-year ended September 30, 2023 stood at Rs 1.54 lakh crore, registering a growth of 65% over the corresponding period of the previous year. International orders at Rs 87,333 crore during the half-year constituted 56% of the total. 

The consolidated order book is at Rs 4.5 lakh crore as on September 30, 2023, with international orders having a share of 35%.

Infrastructure projects, L&T's biggest segment, logged orders worth Rs 28,000 crore, with international orders contributing 24%. The company said it is investing Rs 830 crore to set up a unit for semiconductor chip design and product ownership.