L&T consolidated net profit jumps 45 per cent to Rs 1,702 crore in Q1

Mumbai (Maharashtra) [India], July 26 : Engineering firm Larsen & Toubro (L&T) on Tuesday reported a consolidated net profit of Rs 1,702 crore for the quarter ended June 30, 2022, as compared to Rs 1,174 crore recorded in the corresponding period of the last year, registering a year-on-year growth of 45 per cent.
Larsen & Toubro achieved consolidated revenues of Rs 35,853 crore for the quarter ended June 30, 2022, recording a y-o-y growth of 22 per cent with strong execution witnessed in the Infrastructure Segment and riding on the sustaining growth momentum in the IT&TS portfolio.
International revenues during the quarter under review stood at Rs 13,235 crore, which is 37 per cent of the total revenue.
The Company secured orders worth Rs 41,805 crore at the group level during the quarter ended June 30, 2022, registering a growth of 57 per cent over the corresponding quarter of the previous year.
During the quarter, orders were received across diverse segments like Public Spaces, Metros, Water Management & Waste Water, Minerals and Metal, Factories, Data Centers, Defence, Power Transmission and Distribution and Hydrocarbon Offshore sectors, Larsen & Toubro said in a statement after the company's board of directors approved the Q1 results.
International orders during the first quarter of the current financial year stood at Rs 17,842 crore, which is 43 per cent of the total order inflow.
The consolidated order book of the group is at a record Rs 363,448 crore as on June 30, 2022, with international orders having a share of 28 per cent.
On the outlook for the coming quarters, Larsen & Toubro noted, "the Indian economy continues to sustain the strong recovery momentum evidenced by robust monthly high-frequency indicators. With the Government's move to cut taxes on petrol and diesel, imposition of export duty on steel and petroleum, restrictions on food exports and RBI's recent action of increasing the REPO rate should ease the overall inflationary pressure."
India, however, faces near-term challenges in reining the fiscal deficit and yet manage to sustain the economic growth momentum despite higher inflation and a more adverse balance of payments situation. The Government's persistent efforts to jumpstart economic growth through higher infrastructure spend and incentivizing domestic manufacturing should yield benefits in the medium term, it said.
On the global front, oil price dynamics and recent geo-political developments have led the global economy towards a zone of uncertainty in an environment of high inflation, volatile commodity prices, imposition of sanctions and resultant supply chain disruptions. The Middle East region, an important geography for the Company's Projects business, is likely to be benefitted from the high oil prices resulting in higher hydrocarbon and infrastructure capex spend. This augurs well for the Company, in terms of providing a larger scope of contracting opportunities, it added.
The Company in its first-year post announcing its Lakshya 2026 Strategic Plan, expects to continue its planned trajectory of profitable growth through an efficient and timely execution of its large order book and along with its many value enhancing measures, retain its leadership position and improve shareholder return on a sustainable basis. The Company is on the path of diversification into the new businesses of Green Energy and E-commerce Platforms and at the same time pursue exit options / limit exposure in non-core businesses over the Lakshya 2026 strategic plan period.
Larsen & Toubro said, effective from April 1, 2022, the operating segments have been re-organised, in line with the business strategy to be adopted by the Company under its 5 year plan (Lakshya 2026).
The company has divided its businesses in three categories - Energy Projects, Hi-Tech Manufacturing and IT & Technology Services.
The Infrastructure Projects segment secured order inflows of Rs 18,343 crore, during the quarter ended June 30, 2022, registering growth of 66 per cent compared to the corresponding quarter of the previous year with various orders secured across sub-segments.
International orders at Rs 4,691 crore constituted 26 per cent of the total order inflow of the segment during the quarter. The segment order book stood at Rs 263,977 crore as on June 30, 2022, with the share of international orders at 23 per cent.
The Energy Projects Segment secured orders valued at Rs 4,366 crore during the quarter ended June 30, 2022, registering substantial growth compared to corresponding quarter of the previous year, with receipt of a large order from Middle East in the Offshore vertical of Hydrocarbon business. International order inflow constituted 91 per cent of the total order inflow of the segment during the quarter.
Hi-Tech Manufacturing segment secured orders valued at Rs 3,489 crore during the quarter ended June 30, 2022 registering substantial growth y-o-y with receipt of a key order in the Defence Engineering business. Export orders constituted 7 per cent of the total order inflow of the segment during the quarter.
IT & Technology Services segment recorded customer revenues of Rs 9,424 crore for the quarter ended June 30, 2022, registering a y-o-y growth of 30 per cent. International billing contributed 92 per cent of the total customer revenues of the segment for the quarter ended June 30, 2022.
The Financial Services segment recorded income from operations at Rs 2,958 crore during the quarter ended June 30, 2022, registering a y-o-y decline of 3 percent, mainly attributed to the targeted reduction in the wholesale loan book, the company said.