L-;T Q2 consolidated profit up by 22.5%

1 Nov 2022 , 09:38 AM

Engineering powerhouse Larsen & Toubro (L&T) said on Monday that its consolidated net profit increased by 22.5% to Rs2,229 crore for the quarter that ended on September 30, 2022. (Q2). R Shankar Raman, the chief financial officer of L&T, stated during a media call that despite ongoing volatility in currency and commodities prices, the bottom line was constant. The net profit during the prior quarter was Rs1,819 crore.

According to the financial statistics, the net profit increased sequentially by about 31% in the second quarter. The problems for the corporation, according to Shankar Raman, include “the crisis in eastern Europe hurting food and energy supply chains and the potential for stagflation emerging from supply-led inflation in an uncertain demand environment.” The visibility of persistent domestic consumption demand, he continued, “is the silver lining and bodes well for fresh investments.”

Profit before interest, depreciation, and tax (PBIDT) increased by 24.5% from the same quarter last year to Rs5,638 crore. According to its data, PBIDT was up 21.2% sequentially from the June quarter.

According to the company’s data, operating margins decreased by a tiny three basis points to 11.46% from the previous year. Experts frequently use L&T’s performance as a gauge for capital spending in the economy. This is because of the company’s involvement in both public and private infrastructure projects and orders.

Strong domestic order inflows helped the company in Q2, which resulted in an increase in consolidated revenue from operations of 23% to Rs42,763 crore. This is greater than the Rs39,149 crore Bloomberg Consensus Estimate for the quarter.

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