L&T shares in focus after co's PAT beats Street estimates

Shares of Larsen & Toubro (L&T) are expected to be in focus on Thursday following its Q2FY25 earnings where the company reported a 5% jump in its net profit for the quarter ended September 2024 to Rs 3,395 crore versus Rs 3,223 crore posted in the year-ago period.

The profit figure was slightly higher than ET NOW poll estimates of Rs 3,335 crore.

L&T achieved consolidated revenue of Rs 61,555 crore for the quarter ended September 30, 2024, registering a YoY growth of 21%, aided by accelerated progress in the various businesses in the Projects & Manufacturing (P&M) portfolio.

The revenue was also higher than ET Now poll estimates of Rs 57,622 crore.

International revenues during the quarter were at Rs 32,057 crore. It constituted 52% of the total revenues, largely reflective of a robust international P&M order book, the company filing said.

For the half-year ended September 30, 2024, the consolidated revenues at Rs 1,16,674 crore recorded a YoY growth of 18% with international revenues at Rs 58,305 crore constituting 50% of the total revenues.

Q2 and H1 consolidated PAT of the previous year had the benefit of a non-recurring gain of Rs 512 crore from Transit Oriented Development (TOD) monetization in the Hyderabad Metro concession, the company filing said.

Excluding this TOD monetisation gain, the consolidated net profit for the quarter and the half-year ended September 30, 2024, have registered growth of 25% and 19%, respectively, over the corresponding period of the previous year.

The company received orders worth Rs 80,045 crore at the group level during the quarter ended September 30, 2024, registering a sequential growth of 13% and a YoY de-growth of 10%.

The corresponding quarter of the previous year had the benefit of receipt of two international ultra-mega orders in the Hydrocarbon business.

During the quarter, multi-geography orders were received across different segments like renewables, transmission & distribution, roads & runways, urban transit and nuclear power. International orders at Rs 50,083 crore during the quarter comprised 63% of the total order inflow.

Commenting on the Q2 earnings, Chairman and Managing Director SN Subrahmanyan said the company delivered yet another quarter of strong financial performance despite the continuing global macroeconomic volatility.

“The projects & manufacturing businesses of the company continue to perform well. We have a record order book Rs 5 lakh crore+ that is a testimony of our proven competence in the domains of engineering, construction, manufacturing, and project management," he said.

"Our new transformative investments in Green Energy, Data Centers, Digital Platforms and Semiconductor Design will, besides improving our Digital and Sustainability footprint, compliment our current business portfolio as well," he added.

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