L&T Q2 Results: Net Profit Surges 5% to ₹3,395 Crore, Exceeding Expectations

Larsen & Toubro (L&T) reported a 5% year-on-year increase in net profit for Q2 FY24, reaching ₹3,395 crore, surpassing market expectations. The company’s revenue for the July-September period grew by 21% to ₹61,555 crore, outperforming the forecasted ₹57,303 crore. Before the results were released, brokerages had predicted that sales growth would be propelled by favorable execution conditions in infrastructure projects, along with consistent growth in the IT and ITeS sectors.  

L&T Q2 Results Highlights

• Revenue: Jumps 21% to ₹61,555 crore vs ₹51,024 crore in the previous quarter.
• Net Profit: Grows 5% to ₹3,395 crore vs ₹3,223 crore in the previous quarter.
• EBITDA: Increases 13% to ₹6,362 crore. Margin drops 70 bps to 10.3%.
• Order inflow declines to ₹80,045 crore compared to ₹89,153 crore in the previous quarter. 

L&T Management Commentary

"During the quarter, multi-geography orders were received across different segments like Renewables, Transmission & Distribution, Roads & Runways, Urban Transit, Nuclear Power, Hydel & Tunnel, Minerals & Metals, Factories, Precision Engineering and the Offshore vertical of Hydrocarbon business," the company said in a statement.

"Investment activity has remained resilient, with government capex rebounding from a contraction observed in the first quarter," the company said in a stock exchange filing.

"Lastly, heightened economic and financial market volatility is likely to continue in the short term with the US Presidential elections just around the corner," the company said.

Stock Market Reaction

Over the past year, L&T's share price has increased by roughly 17%, bringing its market capitalization to ₹4.71 lakh crore. This performance trails behind the benchmark Nifty 50, which gained over 27% in the same timeframe. On October 30, L&T's shares closed 0.6% higher on the BSE, reaching ₹3,402 per share.

About L&T

Larsen & Toubro Ltd (L&T) is a diversified industrial conglomerate, delivering an extensive range of products and services across multiple industry sectors. The company’s offerings span engineering, construction, technology, and manufacturing. Its service portfolio includes hydraulics, hydrocarbon processing, rubber machinery, shipbuilding, and valves. Additionally, L&T produces and distributes equipment for construction and mining, as well as products for electrical distribution and control. Operating in over 30 countries, L&T supports clients in industries such as complex onshore and offshore projects, power generation, industrial facilities, and mining.

Also Check: About L&T Group of Companies