Larsen & Toubro (L&T), the infrastructure giant, recorded a consolidated net profit equal to Rs.2,230.49 crore in the second quarter of fiscal year (FY) 2019 – a 23 per cent increase year-on-year (Y-o-Y). The net profit posted by the company last year was Rs.1,819.88 crore.
The jump in the profits can be traced to the 46 per cent Y-o-Y growth in fresh orders. The order wins at the group level during Q2 of FY2019 is valued at Rs.41,921 crore. The company, in its exchange filing, said that the pick-up in domestic ordering activity led to the increase in fresh orders.
The revenue of the company also witnessed positive growth at 21 per cent Y-o-Y equal to Rs.32,080.83 crore. The revenue during the previous fiscal was Rs.26,446.76 crore.
The earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs.3,800 crore, a 27 per cent increase Y-o-Y. As a result, the EBITDA margins grew by 60 basis points to 11.8 per cent during Q2 of FY2019.
The company stated that reasons such as rising crude oil prices, volatility in currency markets, volatility in stock markets, volatility in commodities, and liquidity issues could lead to the underperformance of companies. However, L&T has performed well during the quarter. Since the company has made good profits and revenue, the company is hopeful about its performance for the rest of the year.
Sources: Indian Express, Money Control