Larsen & Toubro (L&T) achieved a consolidated net profit of Rs 1,723 crore in Q2 FY22, recording a growth of 56 per cent over the corresponding quarter of the previous year.
The engineering and construction behemoth said the growth is mainly driven by higher profits in the IT & TS portfolio and improved margins from the projects and manufacturing portfolio as the Covid-19 pandemic induced stress in previous periods progressively wanes out.
L&T’s revenue for July-September quarter stood at Rs 34,773 crore, registering a year-on-year (YoY) growth of 12 per cent. The company attributed the revenue increase to project execution momentum, with the easing of regional lockdowns on progressive vaccination coverage and growth in its IT&TS portfolio.
During Q2, L&T's international sales stood at Rs 12,318 crore, which is about 35 per cent of its total revenue. For the half-year ended September 30, 2021, L&T's revenue stood at Rs 64,108 crore, up 23 per cent YoY. This includes international revenue worth Rs 23,505 crore during the quarter.
For the half-year ended September 30, 2021, L&T's consolidated profit stood at Rs 2,994 crore, recording a 49 per cent YoY decline, on the one-time gain on divestment of the electrical and automation business during H1 FY21.
L&T said that the global economic outlook remains fairly strong, aided by government macroeconomic and central bank's monetary policy support.
"The company continues to focus on profitable execution of its large projects order book, leverage the strong growth momentum in its IT & TS portfolio, cost optimisation measures through automation and intensive use of digital technologies, the release of funds through improved working capital management and a phased divestment of non-core assets," it said.
Shares of L&T closed at Rs 1,778 on Wednesday, down Rs 18.25 or 1.02 per cent, on the NSE.
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