6.6 C
London
Wednesday, November 30, 2022

L&T’s second quarter net profit grows 23% to ₹2,229 cr, margins soften as input cost pressures

Must read

Austin-based ICON awarded $57.2 million NASA contract for lunar construction technology londonbusinessblog.com

ICONa construction engineering company that has raised more than $400 million in funding has won a new contract from NASA to develop new systems...

Do you need a business checking account for your startup? It depends.

Opinions expressed by londonbusinessblog.com contributors are their own. When setting up your startup, choosing the right bank and business checking account can be challenging, especially...

Woody Fu- Wiki, age, height, net worth, girlfriend, ethnicity

Woody Fu is an actor and comedian who has appeared in a number of films. Woody Fu is known for his work in...

Laginas learns lucrative information in “Bubbling Over!” WATCH

After finding the most crucial evidence in the previous episode, the Lagina brothers return to investigate the underground tunnel in The Curse Of Oak...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • L&T reports a net profit of ₹2,229 crore for the quarter ended September.
  • Operating income during the quarter increased 23% to 42,762 crore from ₹34,772 crore last year.
  • The company secured orders worth 51,914 crore at the group level during the quarter.


Larsen & Toubro (L&T) today reported a 22.5% increase in consolidated net profit to 2,229 crore for the second quarter compared to ₹1,819 crore in the same period last year.

Operating income during the quarter increased 23% to 42,762 crore from ₹34,772 crore last year.

Operating margin declined marginally to 11.46% in the second quarter from 11.49% last year. While margins in segments such as energy, high-tech manufacturing and development projects improved year over year, margins in the IT services segment and the key infrastructure segment declined.

In the infrastructure segment, EBIDTA margins in the second quarter were 6.6%, lower than the 8.3% recorded in the same quarter last year.

“The softness of EBIDTA margins can be attributed to the mix of jobs, their advancements and input cost pressures from commodity price movements over the past 12-18 months. As commodity prices are now soft, we should be able to recoup what we lost in the first half of the year,” said R Shankar Raman, CFO of L&T in an earnings conference call.

During the quarter, the company recorded orders worth 51,914 crore at the group level, up 23% year-over-year. Two-thirds of these orders are for housework. International orders were ₹17,341 crore during the quarter, representing 33% of the total order inflow.

The group’s consolidated order book was 3.72 lakh crore as of September 30, 2022, with international orders accounting for 28%.

Given the order bookings seen in the first half of the year, the company said it is confident it will meet its 12-15% revenue and order book guidelines – at the top of the band.

The company also recorded an extraordinary profit of ₹300 crore from the sale of a stake in subsidiaries in July-September; compared to ₹782 crore last year.

Particularities Q2 FY23 Q1 FY23 Q2 FY22
Revenue from operations ₹42,762 crore ₹35,853 crore ₹34,772 crore
Net profit ₹2,229 crore ₹1,702 crores ₹1,819 crores

L&T also said the sale of its 1,400MW Nabha power plant in Punjab may not happen this fiscal year. Raman said running thermal power plants is not the “taste of the season.”

“Investors in the market are looking for broken power plants and Nabha is a well-run unit, but it is not causing any stress,” he said, answering questions about the divestments.

The engineering and construction giant is seeing inflation and certain global headwinds affecting the country’s growth trajectory.

“High inflation, coupled with the threat of an unfavorable BoP amid the increasingly uncertain global economic environment, are potential headwinds to the country’s growth trajectory. High-value investments in the private sector that were scheduled for a major rebound may be delayed by ongoing geopolitical and global economic turbulence,” the company said in a press release.

L&T believes that the government can step up its structural reform efforts in critical areas such as labor, logistics, health and education.

“On the global front, the economic outlook is clouded by significant downside risks, namely the conflict in Eastern Europe affecting food and energy supply chains, gradual polarization and the possibility of stagflation due to supply-driven inflation in an uncertain demand environment,” said L&T.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Austin-based ICON awarded $57.2 million NASA contract for lunar construction technology londonbusinessblog.com

ICONa construction engineering company that has raised more than $400 million in funding has won a new contract from NASA to develop new systems...

Do you need a business checking account for your startup? It depends.

Opinions expressed by londonbusinessblog.com contributors are their own. When setting up your startup, choosing the right bank and business checking account can be challenging, especially...

Woody Fu- Wiki, age, height, net worth, girlfriend, ethnicity

Woody Fu is an actor and comedian who has appeared in a number of films. Woody Fu is known for his work in...

Laginas learns lucrative information in “Bubbling Over!” WATCH

After finding the most crucial evidence in the previous episode, the Lagina brothers return to investigate the underground tunnel in The Curse Of Oak...

Biden steps up his courtship of top donors ahead of the 2024 presidential election

President Joe Biden's top political supporters complained of being shut out for most of his first two years in the White House, many of...