Larsen & Toubro(L&T) Ltd reported a 45% increase in overall net profit for the quarter ending September 30, 2023, to Rs 3,223 crore, aided by strong demand in its major infrastructure projects business. In the previous fiscal year, it reported a combined net profit of Rs 2,229 crore.
The engineering major’s revenue from operations increased 19% to Rs 51,024 crore in Q2FY24, up from Rs 42,763 crore the previous year. The company reported “improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio” in the third quarter. International revenues accounted for 43% of overall revenue during the quarter, at Rs 21,898 crore.
During the quarter ended September 30, 2023, the business received orders of Rs 89,153 crore at the group level, representing a 72% increase year on year. International orders totaled Rs 59,687 crore during the quarter, accounting for 67% of total order inflow.
“Our strong operating and financial performance this quarter demonstrates the resilience of the Company’s business model despite the ongoing volatile geopolitical situation,” stated S N Subrahmanyan, Chairman and Managing Director. Our Projects, Manufacturing, and Services divisions have all expanded. We received the greatest order inflows in the Company’s history during the quarter. This demonstrates our customers’ trust in us and reflects our capacity to complete and execute projects on time. In terms of value for projects under execution, the Company today ranks first among worldwide EPC Contractors working in the MENA region. This demonstrates our strengths as a diverse company present in multiple geographies.
“During the quarter, the Company completed the first ever Buyback of Equity Shares, in line with our long-term Lakshya 2026 plan to increase shareholder value.” Given recent geopolitical developments, we remain cautiously hopeful in the short term. However, we anticipate continued buoyancy in the services sector and the Indian government’s focus on capex.”
The cumulative order inflow for the half-year ending September 30, 2023 amounted at Rs 1.54 lakh crore, representing a 65% increase over the previous year’s similar period. International orders totaled Rs 87,333 crore during the half-year, accounting for 56% of total revenue. As of September 30, 2023, the combined order book was at Rs 4.5 lakh crore, with international orders accounting for a portion of that total.
Frequently asked questions
What is the quarterly result of Larsen and Toubro?
Financials
| Quarterly Results of Larsen & Toubro (in Rs. Cr.) | Jun ’23 | Jun ’22 |
|---|---|---|
| Basic EPS | 12.75 | 6.49 |
| Diluted EPS | 12.74 | 6.48 |
| EPS After Extra Ordinary | ||
| Basic EPS. | 12.75 | 6.49 |
When did L&T stock split?
On July 13th, 2017, the most recent stock split occurred. One LT. NS share purchased before to May 19th, 2004 would be worth 4.5 LT.
What are the future growth and prospects of L&T?
Due to a rapidly rising order pipeline, particularly in the infrastructure and energy sectors, Larsen & Toubro (L&T) is likely to maintain its pace in the medium term. The company’s core order intake increased by 79% year on year to INR50,300 crore, while total order inflow increased by 57% to INR65,520 crore.
What is the history of L&T?
Larsen & Toubro was created in Bombay in 1938 by two Danish engineers, Henning Holck-Larsen and Sren Kristian Toubro. The company originated as a representative for Danish dairy and related equipment manufacturers.
What is the target of Larsen and Toubro share in 2023?
L&T is expected to provide increased revenue billing and operating profit margins, resulting in core earnings growth of roughly 32% in FY23-26E. Goldman Sachs has kept its BUY recommendation on L&T shares and boosted its target price from Rs 2,830 to Rs 3,140.
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