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L&T shares rise following robust Q2 FY 2023-24 results

EditorAmbhini Aishwarya
Published 11/01/2023, 01:20 AM
Updated 11/01/2023, 01:20 AM
© Reuters.

Shares of engineering and construction firm L&T ascended by 1.85% to ₹2983.05 in early morning trading sessions on Wednesday, after the company announced strong results for the second quarter of the fiscal year 2023-24. The firm reported a significant year-over-year (YoY) growth of 44.5% in consolidated net profit, which amounted to 3,222.63 crore. This surge is largely attributed to the effective execution of its extensive order book and advancements in the Projects and Manufacturing portfolio.

The company also marked a 19% YoY increase in consolidated revenue, totaling 51,024 crore, with international revenues contributing 43%. As of the end of September, L&T's consolidated order book was positioned at 450,734 crore, with international orders accounting for 35%.

In the second quarter, L&T disclosed a 45% YoY surge in net profit to 3,223 crore and a consolidated revenue increase of 19% to 51,024 crore. This growth was fueled by successful projects across various sectors including public spaces, irrigation, nuclear power, ferrous metal industry, health sector, renewables, refineries, and IT and ITeS sectors.

Furthermore, L&T secured orders worth 89,153 crore (INR100 crore = approx. USD12 million) during this quarter from a sturdy tender pipeline in both domestic and international markets. This marked an impressive 72% growth compared to last year with international orders comprising 67% of the total inflow.

InvestingPro Insights

Drawing upon real-time data from InvestingPro, we can gain further insights into L&T's current financial status and future prospects. The company's revenue growth has been accelerating, which aligns with its recent report of a 19% year-on-year increase in consolidated revenue. Moreover, L&T's strong earnings should allow management to continue dividend payments, a trend they've maintained for 23 consecutive years.

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InvestingPro also highlights that L&T is a prominent player in the Construction & Engineering industry. This industry dominance is reflected in their substantial order book, which was positioned at ₹450,734 crore at the end of September.

Looking ahead, despite some analysts anticipating a sales decline in the current year, the company is expected to remain profitable. This is backed by L&T's consistently increasing earnings per share, and the company's stock generally trading with low price volatility.

For those interested in a deeper dive into L&T's financials and other expert tips, InvestingPro offers a total of 15 detailed tips related to the company. This wealth of information can provide invaluable insights for investors and financial analysts alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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