L&T Q1 net profit jumps 45% to ₹1,702 cr

Engineering major Larsen & Toubro (L&T) on Tuesday posted consolidated net profit of ₹1,702 crore, registering a robust growth of 45% over the corresponding quarter of the previous year.

The construction giant reported revenues of ₹35,853 crore for the quarter ended June 30, 2022, recording a year-on-year growth of 22% with strong execution witnessed in the infrastructure segment, according to its exchange filing. International revenues during the quarter at ₹13,235 crore constitute 37% of the total revenue.

The company secured orders worth ₹41,805 crore at the group level during the quarter, registering a growth of 57% over corresponding quarter of the previous year.

During the quarter, orders were received across diverse segments like public spaces, metros, water management and waste water, minerals and metal, factories, data centres, defence, power transmission and distribution, and hydrocarbon offshore sectors.

International orders at ₹17,842 crore during the quarter comprised 43% of the total order inflow.

The consolidated order book of the group is at a record ₹3,63,448 crore as on June 30, 2022, with international orders having a share of 28%.

The infrastructure projects segment secured order inflows of ₹18,343 crore during the quarter ended June 2022, registering growth of 66% compared to corresponding quarter of the previous year with various orders secured across sub segments. International orders at ₹4,691 crore constituted 26% of the total order inflow of the segment during the quarter. The segment order book stood at ₹263,977 crore with the share of international orders at 23%.

The energy projects segment secured orders valued at ₹4,366 crore during the first quarter, registering substantial growth compared to corresponding quarter of the previous year, with receipt of a large order from the Middle East in the offshore vertical of hydrocarbon business. International order inflow constituted 91% of the total order inflow of the segment during the quarter. The segment order book was at ₹ 65,372 crore as on June 30, 2022, with the international order book constituting 58%.

The hi-tech manufacturing segment – which comprises the heavy engineering and defence engineering businesses – secured orders valued at ₹3,489 crore during the quarter. Export orders constituted 7% of the total order inflow of the segment during the quarter.

The IT & technology services (IT&TS) segment recorded customer revenues of ₹9,424 crore for the quarter, registering a y-o-y growth of 30% reflecting continued growth momentum in the IT&TS sector. International billing contributed 92% of the total customer revenues of the segment.

In May, L&T Construction bagged a large order from the National High-Speed Rail Corporation Limited (NHSRCL) for India's bullet train project. The railways business of L&T Construction has secured a contract from NHSRCL to construct a 116 kilometre route of high-speed track for the Mumbai-Ahmedabad bullet train project, according to an exchange filing. A project worth ₹2,500 crore to ₹5,000 crore is classified as a large project by L&T.