L&T Q1 results: Net profit rises 45% to ₹1,702 cr; revenue jumps over 22%
Premium- Infrastructure giant, Larsen & Toubro (L&T) registered nearly 45% growth in consolidated net profit of ₹1,702 crore in the quarter ending June 30, 2022 (Q1FY23) over the corresponding quarter of the previous year. Notably, both PAT and revenue declined by 52.99% and 32.16% sequentially.
Infrastructure giant, Larsen & Toubro (L&T) registered a 44.93% growth in consolidated net profit to ₹1,702.07 crore in the quarter ending June 30, 2022 (Q1FY23) compared to ₹1,174.44 crore over the corresponding quarter of the previous year. The latest net profit is attributable to the owners. Consolidated revenue from operations jumped by 22.22% to ₹35,853.20 crore in the quarter under review as against ₹29,334.73 crore in Q1 last year. Notably, both PAT and revenue declined by 52.99% and 32.16% sequentially.
The company had posted a net profit of ₹3,620.69 crore and revenue of ₹52,850.67 crore in the March 2022 quarter.
During the quarter, L&T secured orders worth ₹41,805 crore at the group level registering a growth of 57% over the corresponding quarter of the previous year. International orders stood at ₹17,842 crore during the quarter comprised 43% of the total order inflow.
L&T said, 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.
As of June 30, 2022, the group's consolidated order book was at a record of ₹363,448 crore with international orders having a share of 28%.
L&T's infrastructure project segment secured order inflows of ₹18,343 crore in Q1FY23 registering growth of 66% compared to the 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 recorded customer revenues of ₹14,181 crore for the quarter ended June 30, 2022, registering y-o-y growth of 36% aided by improved execution momentum as the Covid-related challenges receded in the current quarter. The EBITDA margin of the segment during the quarter ended June 30, 2022, was at 6.5% vis-à-vis 7.1% recorded in the corresponding quarter of the previous year.
Further, in the energy projects segment, the company secured orders amounting to ₹4,366 crore in Q1FY23 registering substantial growth compared to the corresponding quarter of the previous year, with receipt of a large order from the Middle East in the Offshore vertical of the Hydrocarbon business. International order inflow constituted 91% of the total order inflow of the segment during the quarter. The business customer revenues were at ₹5,073 crore in Q1FY23 recording a growth of 3% y-o-y, largely attributed to the pickup of execution momentum in the Power business. Further, in Q1 of this fiscal, the EBITDA margin of the segment stood at 8.5% improving from 7.5% over the corresponding quarter of the previous year, on account of execution cost savings in a few projects.
Meanwhile, in the hi-tech manufacturing segment, the company secured orders aggregating to ₹3,489 crore in Q1FY23 registering substantial growth y-o-y with receipt of a key order in the Defence Engineering business. Export orders constituted 7% of the total order inflow of the segment during the quarter. The segment's customer revenues were at ₹1,272 crore in Q1FY23 recording a marginal y-o-y growth of 3%. In Q1 of this fiscal, the EBITDA margin of the segment was at 15.1% declining compared to 19.2% reported in the corresponding quarter of the previous year, since the previous year was higher on the release of cost provisions on completion of a key project and recognition of customer claims.
In the IT & Technology Services segment, the company posted customer revenues of ₹9,424 crore in Q1FY23 registering a y-o-y growth of 30% reflecting continued growth momentum. The EBITDA margin for the segment was at 22.2% in Q1FY23 as compared to 22.8% in the corresponding quarter of the previous year. Improved operational efficiencies were offset by higher employee cost.
On BSE, L&T shares closed at ₹1750.45 apiece down by ₹31.45 or 1.76%. The company's market cap is around ₹2,45,971.69 crore.
