Engineering major Larsen & Toubro Ltd. has recorded a 45% growth in consolidated net profit to ₹1,702 crore in the quarter ending June 30, 2022 compared to ₹1,174 crore over the corresponding quarter of the previous year.
Consolidated revenues came in at Rs 35,853 crore for the quarter, recording a growth of 22%, with strong execution witnessed in the infrastructure segment and sustained growth in the IT portfolio.
International revenues during the quarter were at Rs 13,235 crore, constituting 37% of the total revenue.
“Despite this being a seasonal quarter, the company has performed pretty strongly. The company has performed well on almost all the parameters be it in terms of orders or sales or profitability,” said Group Chief Financial Officer R. Shankar Raman said in a media earnings conference call.
The company said it secured orders worth ₹ 41,805 crore at the group level during the quarter ended June 30, 2022, registering a growth of 57% over the corresponding quarter of the previous year.
During the quarter, orders were received across diverse segments like metros, water management and waste water, minerals and metal, factories, data centers among others.
L&T’s shares ended 1.76% lower at Rs 1750.45 on the BSE Tuesday. The benchmark Sensex closed 0.89% lower. The earnings were announced after trading hours.
The consolidated order book of the group is at a record Rs 3.63 lakh crore as on June 30, 2022, with international orders having a share of 28%.
Shankar Raman added that the company maintains its revenue and order inflow guidance at 12-15% and sees orders fructifying in the minerals and metals space, the data centre segment and e-commerce delivery infrastructure and warehouses segment, going forward.
“Data centers seem to be a new area, which is not really featuring our order book in the previous years. All the majors are landing up in India to build their data center capacities. Also, e-commerce, delivery infrastructure warehouses and showrooms like what IKEA has announced in Delhi, are beginning to pick up pace and we hope that investment in logistics and distribution channels is inevitable,” added Shankar Raman.
The company said, effective from April 1 the operating segments have been re-organised, in line with the business strategy to be adopted by the company under its five-year plan (Lakshya 2026). As part of this, some of the existing segments have been realigned where in energy projects segment will constitute hydrocarbon and power; hi-tech manufacturing will comprise the heavy engineering and defence engineering businesses and IT and technology services segment will now also include the new age businesses of data centers and e-commerce/ digital platforms.
The infrastructure projects segment secured order inflows of Rs 18,343 crore, during the quarter, registering growth of 66% compared to corresponding quarter of the previous year. International orders at Rs 4,691 crore constituted 26% of the total order inflow of the segment during the quarter.
The energy projects segment secured orders valued at Rs 4,366 crore during the quarter, registering substantial growth compared to corresponding quarter of the previous year, with receipt of a large order from the Middle East in the Offshore vertical of hydrocarbon business.
The segment order book was at ₹ 65,372 crore as on June 30, 2022, with the international order book constituting 58%.
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