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Larsen & Toubro (L&T), a prominent engineering and construction conglomerate, announced strong second-quarter (Q2) fiscal year 2024 (FY24) results, exceeding market expectations in terms of both net profit and revenue growth. The company's net profit for the July-September period surged by 5 percent year-on-year to reach Rs 3,395 crore, outperforming the consensus estimate of Rs 3,182 crore as predicted by a Moneycontrol poll of brokerage firms. This positive performance reflects L&T's continued resilience in the face of global economic uncertainties and highlights its strategic positioning in key growth sectors.
The robust revenue growth demonstrated by L&T during Q2FY24 further solidified its position as a leading player in the Indian infrastructure market. The company's revenue for the period climbed by a significant 21 percent to Rs 61,555 crore, surpassing the estimated Rs 57,303 crore. This impressive growth was attributed to several factors, including the execution of large-scale infrastructure projects and the sustained momentum in the IT and ITeS (Information Technology and Information Technology Enabled Services) portfolio. These positive trends are expected to fuel further expansion and solidify L&T's position as a major contributor to India's infrastructure development.
Despite the strong financial performance in Q2FY24, L&T's order inflow for the quarter experienced a decline of 10 percent year-on-year, reaching Rs 80,045 crore. This decrease was partly attributed to the absence of two significant international ultra-mega orders in the Hydrocarbon business, which had propelled the order inflow to Rs 89,153 crore in the corresponding quarter of the previous year. Nevertheless, the company's consolidated order book remained robust, standing at Rs 5,10,402 crore as of September 30, 2024, representing a growth of 7 percent from the previous year. This strong order book provides a solid foundation for future growth and reinforces L&T's position as a reliable and trusted partner for infrastructure development projects.
Looking ahead, L&T remains optimistic about India's economic growth prospects, anticipating continued momentum in the medium term driven by both public and private capital investment. The company's outlook is further strengthened by the government's focus on infrastructure development and the positive impact of the monsoon on rural economies. L&T acknowledges the potential challenges posed by global economic volatility and the US presidential elections but maintains a cautiously optimistic view, recognizing the continued investment activity from Middle Eastern countries in various sectors such as oil & gas, industrialization, and energy transition initiatives.
Source: L&T Q2 net profit rises 5% to Rs 3,395 crore, beats estimates