Consolidated revenue increased nearly 23% YoY to Rs 42,763 crore, beating ET Now poll of Rs 39,750 crore.
Consolidated order intake rose 23% during the quarter to Rs 51,914 crore, and international markets constituted 33% of the total order inflows. The consolidated order book stood at Rs 3.72 lakh crore as of September 30, with international orders having a share of 28%. The growth in the topline was led by strong execution in the mainstay infrastructure segment and sustained growth momentum in the IT and technology services portfolio, the company said in a press release.
However, growth in order inflows was far lesser than the 57% growth seen in Q1. The share of international orders have also dipped, indicating the impact of a global macroeconomic slowdown.
“Large value private sector investments that was set for a major revival, may get delayed due to the persisting geopolitical and global economic turbulence,” the engineering behemoth said in the release. It believes that the global economic outlook is clouded by major downside risks, but remains confident of the domestic market. “…visibility of a continuing domestic consumption demand augurs well for new investments,” L&T said.
Consolidated operating profit rose 22.6% YoY to Rs 4,899.4 crore, while margin dipped a marginal 3 basis points to 11.46%.
SEGMENT SCORECARD
The flagship infrastructure projects segment reported a 39% YoY growth in revenue on the back of accelerated execution of projects. International revenue constituted 19% of the total segment sales. Order inflows doubled on year to Rs 25,058 crore The operating margin, however, dipped 170 basis points YoY to 6.6% due to cost pressures in a few projects.
The energy projects segment, the second largest, saw revenue declining 7% YoY, largely due to slower-than-expected execution of projects. However, cost saving helped margin improve 190 bps to 8.5%. Order inflows declined sharply by 42% YoY, but this was largely because L&T had bagged a mega project in the hydrocarbon business in the same period last year.
The hi-tech manufacturing segment saw a marginal drop in revenue, but margin expanded 400 bps to 18.5% due to a favourable mix.