L&T Q3 PAT grows 14% on strong execution momentum across segments

L&T Q3 PAT grows 14% on strong execution momentum across segments


Larsen & Toubro (L&T) reported a 14 per cent increase in consolidated net profit and revenues rose 17.30 per cent in Q3 on the back of strong order inflows that crossed ₹1 lakh crore for the first time. driven by the infrastructure and energy sectors.

L&T’s net profit in the quarter came in at ₹3,358 crore on revenue of ₹64,667 crore, but the operating margin remained flat at 7.6 per cent weighed down by the IT and technology services segment. Strong execution momentum in infrastructure, hydrocarbon, precision engineering were chief revenue growth drivers.

The engineering company ended the quarter with an outstanding orderbook size of ₹5.64 lakh crore, up a fifth on year.

Large orders

The order inflows saw a boost with large orders from the infrastructure, energy and hi-tech manufacturing segments. International orders accounted for more than half of the inflows in the quarter, and were 42 per cent of the total outstanding orderbook. The company said it had a visibility of ₹5.5 trillion of orders in the near term with domestic prospects at 59 per cent.

The infrastructure segment accounted for the most order flows in the quarter followed by energy.

“During the quarter, the company has taken a strategic stake in E2E Networks with an aim to collaborate and unlock the full potential of AI and digital transformation wave and offer secure cloud services. We expect the Middle East to continue to strengthen its physical and digital infrastructure besides continuing to monetise its Oil & Gas assets,” said SN Subrahmanyan, Chairman and Managing Director, of Larsen & Toubro.

The company stated the near-term outlook is positive and it expects to do orders with ₹5,50,000 crore driven by infrastructure and energy orders. Orders worth ₹2,25,000 crore are expected to come from the international market.

Market volatility

“India would still be one of the fastest-growing major economies in the world, although the pace and sustainability of the growth trend could be shaped by how the country navigates challenges around global and financial market volatility, potential implications of intensified trade wars and domestic inflationary impulses,” the company stated.

Further, the Nabha Power plant saw a 10 per cent increase in revenues during the quarter, but the company is looking into divestment of the plant, “If a company operating in the power business approaches us we are willing to divest the Nabha Power plant on a good offer,” said Shankar Raman, CFO of L&T.





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