Engineering major Larsen & Toubro on Monday reported a 26.35 per cent jump in consolidated net profit for the quarter ended September 30, 2022.
The conglomerate clocked ₹2,819-crore net profit during the quarter against ₹2,2231 crore registered in the same quarter last year.
The company also posted a 23 per cent increase in profit compared to ₹2,293 crore for the quarter ended June.
The total revenue from operations grew 23.21 per cent to ₹43,501 crore (₹35,305 crore). Revenue from operations grew 19.02 per cent sequentially compared to ₹36,547 crore in the quarter ended June.
Growth was driven by the infrastructure segment which registered a 38.93 per cent growth at ₹19,668 crore (₹14,156 crore).
The energy segment posted a decline in profit of 6.9 per cent at ₹5,593 crore against ₹6,001 crore in the same quarter last year.
“As commodity prices are softening we have bulk orders from infrastructure and hydrocarbon segment,” said Shankar Raman, Chief Financial Officer, Larsen & Toubro
The company is hoping to earn $10-15 billion largely in the hydrocarbon segment from the Middle East market.The company is also working on a solar project in Saudi Arabia for the construction of the smart city NEOM.
Divestment plan
“We are planning to divest from the Nabha Power Plant which will take some time. This will not cause any impact on the profit sharing,” added Raman.
Further, the company said it is aiming to reduce the debt of the Hyderabad metro, “Our focus is on lighter balance sheet and increased ridership of the metro. While we will divest it is not going to be a complete exit and we want to reduce the ₹13,000 crore debt to ₹7,000 crore,” said Raman.