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Larsen & Toubro on Monday reported a 24.24 per cent jump in consolidated net profit for the quarter ended December 31, 2022. The Mumbai-headquartered company clocked ₹2,552 crore in profit as against ₹2,054 crore registered in the same quarter last year.
Sequentially, the profit rose 14.54 per cent compared with ₹2,2228 crore reported in Q2.
Total revenue from operations grew 17.25 per cent to ₹46,389 crore in Q3 (₹39,562 crore). Sequentially, the revenue moved up 8.48 per cent.
Splendid order book
“Our order inflows and revenues for the quarter are up by 21 per cent and 17 per cent, respectively. Order book at ₹3.86-lakh crore is at an all-time high and provides multi-year revenue visibility. We are possibly amidst a synchronous capex recovery in India and the GCC. With the revival of private capex investments, India should witness a multi-year capex cycle in the current decade, which augurs well for us,” said SN Subrahmanyan, MD & CEO.
The growth that was driven by infrastructure witnessed an order inflow of ₹32,530 crore, up 28.4 per cent y-o-y (₹25,330 crore). The energy segment also reported an increase in order inflow – up 11.67 per cent y-o-y to ₹9,051 crore compared with ₹8,105 crore last year.
Green energy
“The capex ahead would include development in the green energy space and could see the manufacturing of hydrogen electrolyser, developing a data center and having additional tunnel boring machines,” said Shankar Raman, CFO.
Further, the company stated that the Middle East work and investment will be a compelling part of the company’s portfolio. “The good part of the investment in the Middle East is not from oil and gas. Investment in Saudi Arabia is making several downstreams, which is creating industries,” added Raman.
The company stated that it witnessed a 25 per cent increase in staffing costs, including replacements, retaining people and higher compensation for employees. It also recruited over 3,000 graduate and post-graduate engineering trainees in FY23 compared to 1,067 last year.
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