Jobaaj Stories
Infrastructure giant Larsen & Toubro reported a 10% jump in profits for the quarter ended in March 2022.
The profit for the quarter came in at Rs 3,621 crores against Rs 3,293 crores for the corresponding quarter last year. Despite growing, the profits could not reach Rs 3,788 crores, the profit figure estimated by analysts.
Revenues for the company surged 8.7% to Rs 53,366 crores from Rs 49,116 crores. The company was supported by strong international sales which amounted to over 30% of the company's sales. The operating margins improved QoQ to 12.34% but failed to surpass last year's margin of 13.29%. The firm said cost headwinds and delayed claim certification in projects and manufacturing businesses impacted EBITDA margin in the quarter.
Net profit margins improved QoQ but remained firm at 6.85% YoY. The company's order book surged 46% as they managed to bag orders worth Rs 73,941 crores during the quarter as the company managed to book a mega order in the Middle East.
“The company secured orders worth Rs 1,92,997 crore at the group level during the year ended March 31, 2022, registering a growth of 10 percent over the previous year. During the year, major traction was seen in the international region, especially from the Middle East, where the company bagged large value orders during the year, taking the share of international orders to 44 percent of the total order inflow, as compared to 27 percent in the previous year," L&T said in a statement.
The Board of the company has recommended a final dividend of Rs 22 per share pending approval of shareholders. The share of L&T has declined consistently since April 2022 as the share has declined 12.3%. The stock is seeing a positive response from investors as the stock is currently up 2.8% around Rs 1,569 per share.
Article by Aman Agarwal.
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