INSUBCONTINENT EXCLUSIVE:
Engineering major Larsen - Toubro (L-T) on Monday reported a 22.5 per cent growth in consolidated net profit to Rs 2,229 crore for the
quarter ended September 30, 2022 (Q2).
While the numbers were below street estimates of Rs 2,334 crore for the period according to a poll
volatility in currency and commodity prices
In the year-ago period, the net profit was Rs 1,819 crore.
Sequentially, the net profit was up nearly 31 per cent in Q2, its financial
before interest depreciation and tax (PBIDT) came in at Rs 5,638 crore for Q2, a growth of 24.5 per cent over the year-ago period
Sequentially, PBIDT was up 21.2 per cent versus the June quarter, its results showed.
Operating margins dipped by a marginal three basis
expenditure in the economy
This is due to the public and private infrastructure projects or orders that the company undertakes.
In Q2, the company gained from strong
order inflows in the domestic market, with consolidated revenue from operations increasing by 23 per cent to Rs 42,763 crore in the period
This is higher than the Bloomberg consensus estimate of Rs 39,149 crore for the quarter.
The company recorded orders worth Rs 51,914 crore
at the group level in Q2, registering a growth of 23 per cent over the corresponding quarter of last year
Of this, domestic orders contributed two-thirds to inflows, while international orders contributed to a third
The infrastructure segment, in particular, was a big driver of order inflows in Q2
The segment more than doubled its total orders recorded in Q2 versus last year at Rs 25,058 crore, Shankar Raman said.
Analysts, however,
struck a note of caution, saying that the share of international orders have dipped in Q2, notably from the Gulf region
The overall order inflow growth of 23 per cent in Q2 was also lower than the 57 per cent order inflow growth reported in the June quarter
But some analysts said the June quarter of the current financial year gained from a low base effect owing to Covid-19 restrictions in the
corresponding period last year
The July-September period of last year saw the low base effect begin to fade as restrictions were removed
So, growth in order inflows in Q2 reflects that trend
"The company has reported strong growth for revenue, profitability and order inflows in Q2
senior research analyst at Mumbai-based brokerage Reliance Securities, said.
Shares of L-T closed trade 2.5 per cent up on the BSE on
Monday at Rs 2,023.95 apiece
In the last one year, the stock has risen over 11 per cent on the BSE.
