MUMBAI – Larsen & Toubro (L&T) on Tuesday reported a 15.5% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 2,947.4 crore, but this was sharply lower than an ETNow poll of Rs 3,260 crore.

Consolidated revenue from operations rose nearly 19% YoY to Rs 55,128 crore and was higher than the estimated Rs 54,147 crore.

The engineering behemoth bagged orders worth Rs 75,990 crore during the quarter, registering a robust growth of 25% on a YoY basis.

During the quarter, orders were received across various businesses like the offshore vertical of hydrocarbon, solar EPC and power transmission, water utilities, buildings and factories, and minerals and metals sectors, the company said.

International orders at Rs 50,562 crore during the quarter, comprised 67% of the total order inflows.

On a cumulative basis, order inflows for the nine months ended December stood at Rs 2.31 lakh crore, a growth of 49% from the previous year. International orders at Rs 1.38 lakh crore, constituted 60% of the total inflows. The consolidated order book of L&T stood at Rs 4.69 lakh crore as of December end, with the international orders having a share of 39%.“We have registered yet another quarter of strong performance, despite the headwinds from a volatile global environment and consequent supply chain constraints,” said S N Subrahmanyan, chairman and managing director of L&T.

“We are currently witnessing improved capex spends in both our primary geographies of India and the Middle East. Despite continued global macroeconomic and geopolitical volatility we remain positive about the investment spends continuing in the medium term,” Subrahmanyan said.

During the last quarter, international business made for 44% of the total revenue, compared to 37% in the same period last year.

Consolidated earnings before interest, taxes, depreciation, and amortization or EBITDA increased 14% YoY to Rs 5,759 crore, but margins shrunk marginally to 10.4% from 10.9%.

The total operating expenses increased by 19% YoY to Rs 49,369 crore. Finance cost rose 13% YoY to Rs 904 crore.

Strong Infrastructure Show

The mainstay segment for L&T did extremely well in the last quarter, with the revenue surging 27% YoY to Rs 27,845 crore, aided by robust execution momentum from a growing order book. International revenues constituted 29% of the total revenue of the segment during the quarter.

Order inflows for the segment saw a healthy growth of 33% YoY to Rs 43,208 crore, with marquee orders mainly in the power transmission and distribution business. International orders at Rs 27,230 crore, constituted 63% of the total order inflow of the segment.

However, margins shrunk by 150 basis points to 5.5% due to continued cost pressures in a few legacy projects that are nearing completion.

Energy Projects Firm

Energy projects, the second largest segment for L&T, also reported a healthy 24% YoY growth in revenue to Rs 7,864 crore, led by planned execution ramp-up in international projects in the hydrocarbon business. International business made up 63% of the total revenues in this segment.

Order inflows grew at a healthy rate of 47% YoY to Rs 13,281 crore on the back of mega orders in the offshore vertical of the hydrocarbon business.

The order book for this segment stood at Rs 1.13 lakh crore as of December end, with the international order book constituting 81%.

Operating margin improved 100 bps to 9.7% in the quarter, mainly on account of job savings in hydrocarbon and customer claim settlements in the power business, L&T said.

L&T remains focused on tapping emerging opportunities both in India and overseas with its proven competence in engineering, manufacturing, construction, project management, and services for profitable execution of its large order book.

Ahead of the earnings, shares of L&T ended 1.8% lower on the National Stock Exchange at Rs 3,640.

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