L&T net profit grows 15% to Rs 2,947 crore in October-December

New Delhi: Infrastructure major Larsen and Toubro (L&T) on Tuesday posted a 15 per cent rise in consolidated profit after tax at Rs 2,947 crore in the December quarter on the back of higher income.

The company had posted a consolidated PAT (profit after tax) of Rs 2,552.92 crore in the year-ago period.

The consolidated income of the company in the October-December period increased to Rs 55,965.57 crore from Rs 47,144.75 crore in the year-ago period, L&T said in an exchange filing.

Speaking to media during earnings call, company's Whole-time Director and Chief Financial Officer R Shankar Raman said, "During the October-December quarter the company won the consolidated orders which registers growth of 25 per cent over performance of Q3 of previous year....25 per cent order inflow growth is followed by 19 per cent growth in consolidated revenue for the quarter."

L&T Chairman and Managing Director S N Subrahmanyan said that the company registered yet another quarter of strong performance, despite headwinds from a volatile global environment and consequent supply chain constraints.

"Our nine-month order inflow has crossed the FY'23 level. This is a testament to our wide capability spectrum, diversified presence, financial strength and most importantly the faith reposed in us by our customers," he explained.

The company bagged orders worth Rs 75,990 crore at the group level during the quarter ended December 31, 2023, registering a growth of 25 per cent year on year.

During the quarter, orders were received across various businesses like offshore vertical of hydrocarbon, power transmission, water utilities, buildings and factories and minerals and metals sectors.

International orders worth Rs 50,562 crore during the quarter comprised 67 per cent of the total order inflow, the company said.

Asked about the impact of 2024 general elections on the company's revenue and guidance for the next financial year, the CFO said, "We will definitely slow down in quarter one because that will be the election period... a new government has to be formed, the budget has to be formalised.

"Sometime in July we expect the budget so the action will shift to the second half of the next year from the fresh order inflow. But whatever programmes are midway for example the coastal road project...whether there is election or not it doesn't make sense." L&T's consolidated order book is at Rs 4,69,807 crore as on December 31, 2023, with international orders having a share of 39 per cent.

When asked whether the ongoing tension in the Red Sea will have an effect on the company, he said: "As far as the Red Sea is concerned, it is a matter of concern because of the importance of the channel for logistics etc. But given that it seems to be a lingering problem. We have started working on alternate routes. Too early to say that difficulty has been crossed. We have to be very very alert and watchful. There could be some cost implications."

Larsen & Toubro is a USD 23 billion Indian multinational engaged in engineering, procurement and construction (EPC) projects, hi-tech manufacturing and services. It operates in over 50 countries.