Engineering and construction conglomerate Larsen & Toubro (L&T) on Tuesday, July 25, reported a 46.5 percent year-on-year (YoY) jump in consolidated net profit at Rs 2,493 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, Larsen & Toubro posted a net profit of Rs 1,702 crore, the company said in a regulatory filing. CNBC-TV18 Polls had predicted a profit of Rs 2,150 crore for the quarter under review.

In the quarter, consolidated revenue stood at Rs 47,882 crore during the period under review, up 33.6 percent against Rs 35,853 crore in the corresponding period of the preceding fiscal.

This was primarily aided by the execution of a healthy opening order book in its projects and manufacturing portfolio. CNBC-TV18 Polls had predicted revenue of Rs 40,552 crore for the quarter under review.

At the operating level, EBITDA jumped 23.1 percent to Rs 4,868.7 crore in the first quarter of this fiscal over Rs 3,953.7 crore in the corresponding period in the previous fiscal.

The EBITDA margin stood at 10.2 percent in the reporting quarter compared to 11 percent in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company received orders worth Rs 65,520 crore at the group level during the quarter ended June 30, 2023, registering a strong year-on-year growth of 57 percent.

During the quarter, orders were received across diverse segments like rail, renewables, rural water supply, transmission and distribution, IT and office space, and onshore and offshore verticals of the hydrocarbon business.

International orders at Rs 27,646 crore during the quarter comprised 42 percent of the total order inflow. The consolidated order book of the group is at Rs 412,648 crore as on June 30, 2023, with international orders having a share of 29 percent.

Infrastructure projects

This segment secured order inflow of Rs 40,051 crore, during the quarter that ended June 30, 2023, registering a significant growth of more than 100 percent year-on-year on receipt of a healthy mix of large-value orders across sub-segments.

International orders at Rs 13,872 crore constituted 35 percent of the total order inflow of the segment during the quarter. The segment order book stood at Rs 3,01,159 crore as on June 30, 2023, with the share of international orders at 24 percent.

Energy projects

This segment secured orders valued at Rs 7,245 crore during the quarter that ended June 30, 2023, registering a substantial growth of 66 percent year-on-year, with the receipt of orders in the onshore and offshore verticals of the hydrocarbon business.

International order inflow constituted 40 percent of the total order inflow of the segment during the quarter. The segment order book was at Rs 72,870 crore as on June 30, 2023, with the international order book constituting 62 percent.

Hi-tech manufacturing

This segment secured orders valued at Rs 1,051 crore during the quarter that ended June 30, 2023, registering a decline of 70 percent over the corresponding quarter of the previous year, largely due to the relatively higher base effect of the previous year led by order wins in defence engineering business.

Export orders constituted 50 percent of the total order inflow of the segment during the quarter. The order book of the segment was at Rs 25,630 crore as on June 30, 2023, with the share of export orders at 12 percent.

IT & Technology Services

This segment recorded customer revenues of Rs 10,851 crore for the quarter ended June 30, 2023, registering a year-on-year growth of 14 percent and reflecting growth impetus in the IT&TS sector. International billing contributed 92 percent of the total customer revenues of the segment for the quarter ended June 30, 2023.

The aggregate revenue of the two listed subsidiaries (LTIMindtree and L&T Technology Services Ltd) in this segment at $1,339 million

registered a healthy year-on-year growth of 8 percent in dollar terms.

Financial Services

This segment recorded income from operations at Rs 3,020 crore during the quarter that ended June 30, 2023, registering a year-on-year growth of 2 percent, mainly attributed to higher disbursement in the retail business, in line with its stated objective of retailisation of the loan book.

The total loan book is at Rs 78,566 crore on June 23 against Rs 80,893 crore on March 23. This variation is due to the planned phaseout of the wholesale loan book upon repayments and sell-downs during the quarter. The Retail loan book now constitutes 82 percent of the total loan book as on June 30, 2023. The financial services business is poised to achieve its Lakhsya targets ahead of FY 2025-26.

Development Projects

This segment recorded customer revenues of Rs 1,294 crore during the quarter ended June 30, 2023. The segment EBIT for the quarter ended June 30, 2023, registered a profit of Rs 123 crore as compared to a loss of Rs 21 crore during the corresponding quarter of the previous year, primarily due to consolidation of Nabha Power profits and improved Metro ridership.

The results came after the close of the market hours. Shares of Larsen & Toubro ended at Rs 2,561.95, down by Rs 43.40, or 1.67 percent on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Jul 25, 2023 4:55 PM IST