BENGALURU (Reuters) -India’s Larsen and Toubro reported first-quarter profit and revenue above estimates on Wednesday, cushioned by earnings from previously-commissioned projects.
The company reported a consolidated net profit of 27.86 billion rupees ($332.9 million) for the quarter ended June 30, up 11.7% year-on-year. Analysts were expecting a profit of 27.44 billion rupees, per LSEG data.
Its revenue from operations rose 15.1% to 551.2 billion rupees in the June-quarter, also beating analyst estimates of 537.84 billion rupees.
The company said it witnessed robust execution in its projects and manufacturing portfolio on the back of a large order book.
L&T’s consolidated order book as of June-end stands at 4.91 trillion rupees, growing 19% year-on year.
Its results are often taken a key marker of infrastructure spending in the country, mostly due to the diverse nature and the scale of its projects.
Infrastructure Projects, the company’s largest segment, received orders worth 400.53 billion rupees, with international orders accounting for 49% of the inflow.
The segment’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 5.8% from 5.1% a year ago.
Apart from India, L&T operates in the Middle East, Southeast Asia, the United States, Europe, and Africa.
At the group level, the orders received during the quarter grew around 8% to 709.36 billion rupees year-on-year, mainly on strong ordering momentum from the Middle East, the company said.
While post-election political stability and continued thrust on capex in India sits well for the business, the company cautioned on continued headwinds from geopolitical conflicts, supply chain disruptions and commodity price volatility.
(Reporting by Anisha Ajith in Bengaluru; Editing by Varun H K)
