Larsen & Toubro (L&T) posted a consolidated net profit of Rs 2,229 crore in Q2 FY23, registering a growth of 23% over the corresponding quarter of the previous year.
All the major segments reported higher profits, led by the IT&TS and Financial Services businesses, L&T said in a statement.
The conglomerate recorded revenues of Rs 42,763 crore for the quarter ended 30 September 2022, recording a YoY growth of 23% with execution tailwinds in the Infrastructure Projects segment and sustained growth momentum in the IT&TS portfolio. International revenues during the quarter stood at Rs 15,473 crore and constituted 36% of the total revenue.
The company recorded orders worth Rs 51,914 crore at the group level during the quarter ended 30 September 2022, registering a growth of 23% over the corresponding quarter of the previous year. International orders amounted to Rs 17,341 crore during the quarter and comprised of 33% of the total order inflow.
The consolidated order book of the group was at Rs 372,381 crore as on 30 September 2022, with international orders having a share of 28%.
The Infrastructure Projects segment recorded customer revenues of Rs 19,370 crore for the quarter ended 30 September 2022, registering a YoY growth of 39%, aided by accelerated execution of projects across various sites. The segment secured order inflows of Rs 25,058 crore in Q2 FY23, registering a substantial growth of more than 100%, as compared to Q2 FY22.
The Energy Projects segment posted customer revenues of Rs 5,586 crore in Q2 FY23, recording a decline of 7% YoY, largely attributed to slower than expected progress across few projects in the Hydrocarbon business. The segment secured orders valued at Rs 8,441 crore during the quarter ended 30 September 2022, registering a decline of 42% YoY since previous year had the benefit of receipt of a mega international order in the Hydrocarbon business.
The Hi-Tech Manufacturing Segment recorded customer revenues of Rs 1,456 crore for the quarter ended 30 September 2022, a marginal drop over the corresponding quarter of the previous year. The segment secured orders valued at Rs 1,768 crore during the quarter ended 30 September 2022 registering substantial growth of 62% over corresponding quarter of the previous year.
The IT & Technology Services (IT&TS) Segment posted customer revenues of Rs 10,151 crore for the quarter ended 30 September 2022, registering a YoY growth of 29%, reflecting continued growth impetus in the IT&TS sector. The aggregate revenue of the three listed subsidiaries in this segment at $1,270 million registered a sequential growth of 4%.
The Financial Services Segment reflects the performance of L&T Finance Holdings, a listed subsidiary. The segment recorded income from operations at Rs 3,152 crore during the quarter ended 30 September 2022, registering a YoY growth of 6%, mainly attributed to higher disbursement in retail business, in line with its strategy of retailisation of the loan book.
The total loan book, at Rs 90,098 crore, grew by 4% YoY as compared with September 2021, with growth achieved on increased disbursements in the retail portfolio and targeted reduction in defocused businesses.
In its outlook, L&T said that the company's Projects & Hi-Tech Manufacturing businesses are rightly positioned to leverage the India and Middle East capex opportunity and with tech enabled skill sets and offerings, the IT&TS business will continue to pursue growth in the global services domain.
The company's strategy of focusing on Projects, Hi-Tech Manufacturing and IT&TS services in a rapidly changing global business environment is expected to provide improved returns to all its stakeholders.
Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.
The scrip rose 2.50% to end at Rs 2023.95 on the BSE.
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