L&T Q2 profit rises 45 pc to Rs 3,223 crore

New Delhi: Larsen & Toubro (L&T) on Tuesday reported 44.5 per cent increase in consolidated net profit to Rs 3,222.63 crore for the quarter ended September 30, 2023, on the back of higher revenue from operations.

The company had posted a profit of Rs 2,228.97 crore in the year-ago period, L&T said in a regulatory filing.

In a conference call, L&T CFO R Shankar Raman said that as far as the profit growth is concerned it basically arises out of 26 per cent growth in revenue.

"And also the fact that we have been able to have the monetisation...coming out of the sale of land in one of our subsidiaries, mainly Hyderabad Metro, and also the fact that our treasury income has grown by almost 60 per cent at the H1 level as compared to H1 of the previous year...So the combination of all this has enabled the profit to grow by 45 per cent," he explained.

Income during July-September 2023 increased to Rs 52,157.02 crore from Rs 43,501.14 crore in the year-ago period.

There has been a strong all-round performance of the company, the CFO said, adding that the business environment did not get easier.

Further, he said that the divestment of L&T IDPL is progressing well and is scheduled to be completed in the current year.

"The company for the quarter ended September 30, 2023, posted a consolidated Profit After Tax (PAT) of Rs 3,223 crore, registering a significant growth of 45 per cent compared to the corresponding quarter of the previous year," the company said.

Company's Chairman and Managing Director S N Subrahmanyan said that in the near term, the company remains cautiously optimistic, considering the recent geopolitical developments.

"However, we do expect sustained buoyancy of services and the Indian government's thrust on capex to continue," he explained.

On a cumulative basis, the order inflow for the half-year ended September 30, 2023, stood at Rs 154,672 crore, registering a growth of 65 per cent over the corresponding period of the previous year. International orders at Rs 87,333 crore during the half year constituted 56 per cent of the total.

Larsen & Toubro is a $23 billion Indian multinational engaged in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing and services. It operates in over 50 countries.