InvestorQ : How were the reported profit numbers of Larsen & Toubro for the quarter ended September 2022?
Aashna Tripathi made post

How were the reported profit numbers of Larsen & Toubro for the quarter ended September 2022?

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Aditi Sharma answered.
4 weeks ago
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For the September 2022 quarter, L&T reported 23% higher sales revenues at Rs42,763 crore on a group consolidated basis. For Q2FY23, order inflows were up 23% yoy with record order book levels. International revenues of L&T stood at Rs15,473 crore and constituted for 36% of total revenues. Bulk of the quarterly order flows came to infrastructure projects at Rs25,058 crore while infra revenues were up 39% yoy. Energy projects saw 7.7% fall in revenues. The big contribution to growth in top line and majorly to bottom line came from the IT and financial services space, which stood out in a rather tough quarter.

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%

Now for the profit story. The net profits for the September 2022 quarter surged by 23% to Rs2,229 crore. The IT business comprising of LTI, LTTS and Mindtree had an operating margin of 22%, which is competitive in the current IT scenario. Profit growth was most prominent in the financial services and the IT sector despite the margins being relatively subdued in the energy and the infrastructure segment. For the latest quarter, the net Margins were at 5.21% in Q2FY23 compared to a flat 5.23% in Q2FY22 and net margins at a much lower 4.75% in the sequential Q1FY23 quarter. However, that is more due to exceptional gains. Debt service coverage ratio or DSCR improved sharply in the latest quarter on a yoy basis.

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