One of the largest construction companies in India, Larsen & Toubro on Wednesday released its performance numbers for the quarter that ended in June 2022.
The multinational conglomerate company, based in Mumbai, achieved consolidated net profit growth of nearly 45% compared to the first quarter of the previous financial year. As of now, the consolidated net profit of Larsen & Toubro is standing at Rs 1702 crores.
In the first quarter of the previous year, the net profit of the company was standing at Rs, 1174 crores.
Even though there was an increase in the consolidated net profit of the company on a year-to-year basis, the net profit went down by nearly 53% sequentially.
As estimated by stock analysts, consolidated revenue from operations of the company increased by 22.22% during April–June 2022 quarter. As of now the consolidated revenue from operations is standing at Rs, 35853 crores. This increase in revenue from operation was due to the increasing construction activity led by Larsen & Toubro in the post-Covid-19 economic scenario. The effective execution of the projects handled by Larsen & Toubro also helped the company post growth in revenue and net profit.
Another important factor is the increase in the number of orders secured by the business in the first quarter of the current financial year. Secured orders of Larsen & Toubro in the first quarter of the financial year 2023 increased by nearly 57% compared to the first quarter of the previous financial year. In monetary terms, the order secured by the company was worth nearly Rs, 41805 crores.
The strong growth in orders and exceptional performance posted by the company in net profit and consolidated revenue from the operations hint that the company is going to achieve its goal of profitable growth in the upcoming years.
Lakshya 2026 Strategic Plan
According to ‘Lakshya 2026 Strategic Plan’, Larsen & Toubro expects to achieve profitable growth in coming years with the help of timely execution of order book, and implementation of measures which would increase the value. The company also expects to retain the top leadership positions of the business entities so that there is continuity in growth plans. These plans if executed properly would significantly improve shareholders’ returns sustainably.
As an after effect of the announcement of L&T performance numbers for the quarter ending in June 2022, shares of Larsen and Toubro limited gained 46.75 (2.67%) on the Bombay stock exchange to close the market at 1797.20. The stocks of the company on the National stock exchange also witnessed similar growth in their share value.