Larsen & Toubro Ltd (L&T) reported second quarter consolidated net profit for the period ended September 30, 2023 surged 44.56% to ₹3,222.63 crore as compared with ₹2,228.97 crore in the year earlier on a 19% growth in revenue, monetisation of land assets, and rise in treasury income.
Consolidated revenue at ₹51,024 crore, a 19.31% growth, was primarily aided by improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio, R. Shankar Raman, Wholetime Director & CFO, L&T said in a conference call. International revenue during the quarter at ₹21,898 crore constituted 43% of the total revenue and a bulk of the order came from Saudi Arabia, Mr. Raman said. He, however, said that the Israel-Palestine conflict had no impact on the company’s execution in the region and order inflow. “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,” Chairman and Managing Director S. N. Subrahmanyan said in a statement “All our businesses – Projects, Manufacturing and Services have grown. During the quarter, we received the highest ever order inflows in the history of the company. This shows the faith our customers place in us and is a reflection of our capability to perform and deliver projects on time,” he said. “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,” he added.
“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,” he further said. During the quarter the company received orders worth ₹ 89,153 crore at the group level, reporting a growth of 72% Year-on-Year (YoY). The orders were received across diverse segments like onshore verticals of the Hydrocarbon business, Urban Transit systems, Transmission & Distribution as well as Residential & Commercial Space, the company said. International orders at ₹59,687 crore during the quarter comprised 67% of the total order inflow, it added. The consolidated order book is at ₹4,50,734 crore as on September 30, 2023, with international orders having a share of 35%.
The segments that performed well during the quarter included Energy Projects with EBITDA margin at 9.5%, compared with 8.5% a year earlier; Realty, Industrial Valves, Construction Equipment & Mining Machinery and Rubber Processing Machinery with EBITDA margin at 20% compared with 17.5% a year earlier; Financial Services Segment with PBT increasing to ₹796 crore compared with ₹613 crore a year earlier, and Development Projects Segment with EBITDA of ₹ 634 crore compared with a loss of ₹12 crore a year earlier. While Infrastructure Projects segment reported lower EBITDA margin at 5.4% vis-à-vis 6.6% a year earlier, Hi-Tech Manufacturing Segment posted EBITDA margin at 14.9% compared with 18.5% a year ago, and IT & Technology Services (IT&TS) Segment reported EBITDA margin at 20.2% compared with 21.4% a year earlier.
