NEW DELHI: Engineering and construction heavyweight Larsen & Toubro recorded its highest quarterly order inflow of Rs. 89,153 crore at the consolidated group level in Jul-Sep, up 72% year-on-year. The consolidated order book stood at Rs. 4,50,734 crore as on September 30, with international orders having a share of 35%.
L&T has guided for 10-12% year-on-year growth in its order inflow for 2023-24 (Apr-Mar) and as on September 30, the conglomerate was at 65% ahead of the order intake as compared to the previous year and it expects to outperform the guidance. Order inflow for the half-year period (Apr-Sep) was at Rs. 1,54,672 crore, registering a growth of 65% year-on-year.
“What I can only assure you is looking at the way we are placed at the H1 (Apr-Sep) level, both in terms of water intake and in terms of revenue, we are expected to outperform them,” said R Shankar Raman, Whole-time Director and Chief Financial Officer, L&T in a post earnings conference call with journalists on Tuesday. Guidance for revenue growth for the current financial year is at 12-15% year-on-year.
During Jul-Sep quarter, order inflow was dominated by demand for projects from the Middle East and North Africa and from within the region primarily from Saudi Arabia.
L&T released its earnings for Jul-Sep on Tuesday evening, wherein the conglomerate’s consolidated profit after tax was at Rs. 3,223 crore, up 45% from the year ago period, while consolidated revenues stood at Rs. 51,024 crore for the quarter, up 19% year-on-year.
While order inflow and earnings performance showed a positive trend, L&T’s consolidated operating margin for Jul-Sep declined to 11% as against 11.4% from the year ago period. Shankar Raman highlighted that the margin performance was impacted due to input cost increase associated with legacy pre-covid projects, which are gradually coming to closure.