In the early hours of Wednesday, Larsen and Toubro (L&T) witnessed a remarkable surge in its shares, reaching the day’s peak price of Rs 2983.05, marking a substantial gain of 1.85 percent after unveiling its financial performance for the third quarter of the year.
During the September quarter, L&T reported a staggering 44.5 percent year-on-year (YoY) surge in its consolidated net profit, reaching an impressive figure of Rs 3,222.63 crore. In comparison, the net profit for the engineering and construction giant during the same period last year stood at Rs 2,228.97 crore.
The company’s consolidated revenue for the quarter stood at Rs 51,024 crore, reflecting a significant YoY growth of 19 percent. This notable growth was primarily attributed to the improved execution of the extensive order book and accelerated progress in both Projects and Manufacturing portfolios. Of this revenue, international earnings amounted to Rs 21,898 crore, constituting a substantial 43 percent of the total revenue.
As of September 30, 2023, L&T’s consolidated order book reached an impressive Rs 450,734 crore. Notably, international orders constituted 35 percent of this robust order book, showcasing the company’s strong global presence and business acumen. This substantial figure marked a notable increase from the previous year when the company’s order book was recorded at Rs 373,281 crore.
During the quarter, L&T achieved a significant milestone by successfully completing its inaugural share buyback, a strategic move aligning with the company’s long-term vision outlined in its Lakshya 2026 plan. This move was geared towards enhancing shareholder value, showcasing the company’s commitment to its investors.
Commenting on the results, S.N. Subrahmanyan, Chairman and Managing Director at L&T, expressed cautious optimism given the recent geopolitical developments. However, he also expressed confidence in the sustained buoyancy of the company’s services and the Indian Government’s continued focus on capital expenditure.
As the clock struck 12:44, L&T shares were trading slightly lower than the previous close, hovering at ₹2,906.25. Despite the minor dip, the overall market response was a testament to the company’s robust performance and strategic initiatives, propelling L&T into a promising trajectory for the upcoming quarters.
