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Engineering major Larsen & Toubro on Tuesday reported a 45 per cent jump in consolidated net profit at ₹1,702 crore for the quarter ended June 30, 2022, riding on strong execution witnessed in the infrastructure segment and sustaining growth momentum in the IT&TS portfolio. L&T had reported a net profit of ₹1,174 crore in Q1 FY22.
The company’s revenue rose 22 per cent to ₹35,853 crore (₹29,335 crore). International revenues during the quarter, at ₹13,235 crore, constitute 37 per cent of the total revenue. The company also secured orders worth ₹41,805 crore at the group level during the quarter, registering a growth of 57 per cent over the year-ago period.
Effective April 1, the operating segments have been re-organised, in line with the business strategy to be adopted by the company under its 5-year plan (Lakshya 2026). Some of the existing segments have been realigned under three segments. Energy Projects is a newly formed segment that constitutes the current segments of Hydrocarbon and Power, to reflect the group's entry into the green energy space and integrated pursuit of opportunities in a rapidly transforming energy sector. Hi-Tech Manufacturing comprises the heavy engineering and defence engineering businesses, being combined, to leverage the extensive engineering, manufacturing and fabrication expertise across the various customer segments. IT & Technology Services comprises the listed subsidiaries including L&T Infotech, L&T Technology Services and Mindtree. This segment will now also include the new age businesses of Data Centers and E-commerce / Digital Platforms.
Near-term challenges
The company said the Indian economy continues to sustain the strong recovery momentum evidenced by robust monthly high-frequency indicators. The government’s move to cut taxes on petrol and diesel, imposition of export duty on steel and petroleum, restrictions on food exports and RBI’s recent action of increasing the REPO rate should ease the overall inflationary pressure.
“India, however, faces near-term challenges in reining the fiscal deficit and yet manages to sustain the economic growth momentum despite higher inflation and a more adverse balance of payments situation. The government’s persistent efforts to jumpstart economic growth through higher infrastructure spending and incentivising domestic manufacturing should yield benefits in the medium term,” L&T said in a statement.
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