L-;T Q2FY23 net profits up 22.5% at Rs2,229 crore on operating profit surge from IT and financial services

2 Nov 2022 , 12:01 PM

L&T reported 22.98% growth in total revenues for the September 2022 quarter on consolidated basis at Rs42,763 crore. Revenue were up by 19.27% in sequential terms.

For Q2FY23, order inflows were up 23% yoy. International revenues at Rs15,473 crore accounted for 36% of total revenues.

Bulk of the quarterly order flows came to infrastructure projects at Rs25,058 crore and recorded 39% revenue surge.

Energy projects saw 7.7% fall in the revenues for the quarter as did high-tech manufacturing.

IT and financial services grew top line at 4-6%, but their bottom line contribution was much bigger.

The net profits for the quarter surged by 22.51% at Rs2,229 crore on a yoy basis and the profits were higher on a sequential basis.

The IT business had an operating margin of 22%, which his competitive with the current IT sector averages. Profit growth was most prominent in the financial services and the IT sector while margins were much more subdued in the energy and the infrastructure segment.

Net Margins were at 5.21% in Q2FY23 compared to 5.23% in Q2FY22 and net margins at 4.75% in Q1FY23 quarter on exceptional gains. DSCR improved sharply in the latest quarter on a yoy basis.

Financial highlights for Sep-22 compared yoy and sequentially

	Larsen & Toubro
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 42,763	₹ 34,773	22.98%	₹ 35,853	19.27%
Net Profit (Rs cr)	₹ 2,229	₹ 1,819	22.51%	₹ 1,702	30.96%
Diluted EPS (Rs)	₹ 15.85	₹ 12.94		₹ 12.10
Net Margins	5.21%	5.23%		4.75%