L&T post strong Q2 performance
Shares of Larsen & Toubro (L&T) were up 4% at Rs 1,861 on the BSE in Thursday’s intra-day trade after the company posted a healthy operational performance for the quarter ended September 2021 (Q2FY22).
L&T reported marginally lower-than-expected execution in Q2FY2022 while OPM remained in line with estimates.
Consolidated revenue grew by 12% y-o-y to Rs
34,773 crore, where domestic revenues grew by 19% y-o-y at Rs 22455 crore. Consolidated OPM at 11.5% (up 74 bps y-o-y).
Consolidated adjusted net profit stood at Rs 1,723 crore (up 55.7% y-o-y, adjusted for exceptional items in Q2FY2021).
The growth is mainly driven by higher profits in the IT&TS portfolio and improved margins from the projects & manufacturing portfolio as the pandemic induced stress in previous periods progressively wanes out.
The management retained its guidance for low to mid-teens growth in order intake and revenues for FY2022, while it expects OPM and working capital requirements to remain at FY2021 levels.
Order prospects as on September 2021 were healthy at Rs 6.83 lakh crore. L&T has bagged orders worth Rs 42,140 crore during Q2FY22, registering a robust growth of 50% compared with the corresponding period of the previous year. The order book is at a record level at Rs 3.31 lakh crore translating to 2.2x its TTM consolidated revenues.
L&T remains at the forefront to reap benefits from the AtmaNirbhar Bharat Scheme with its diversified businesses across sectors such as defence, infrastructure, heavy engineering, and IT. The company remains the best proxy for domestic capex and an improving business environment.
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