Larsen & Toubro Q2 net jumps 23% to Rs2,230 cr

Engineering and construction major Larsen & Toubro had recorded a 22.6 per cent jump in its consolidated net profit for fiscal second quarter (July-September 2018-19) to Rs2,230 crore, on the back of higher order execution.

L&T had reported a net profit of Rs1,820 crore for the similar quarter of the previous financial year.
Consolidated gross revenue for the quarter ended 30 September 2018 stood at Rs32,081 crore, showing a growth of 21 per cent year-on-year. L&T attributes this to improved execution in project businesses, strong growth in service businesses and recognition of revenue on completed performances in realty business.
Consolidated order book of the company stood at Rs281,166 crore as of 30 September 2018, with overseas orders forming 22 per cent of the total.
Infrastructure segment secured orders of Rs23,406 crore during the quarter ended 30 September 2018 recording a substantial growth of 69 per cent, driven by awards in heavy civil infrastructure, buildings and factories and water & effluent treatment business verticals. International orders contributed to around 14 per cent of the total order inflow of the segment during the quarter.
The order book of the segment stood at Rs218,261 crore as of 30 September 2018.
L&T said curbs on power companies to curtail SO2 emissions saw a spurt of ordering activity for flue gas desulphurization (FGD) in Q2 FY 2018-19. The power segment was successful in receiving 4 FGD orders during the quarter ended 30 September 2018 and recorded an order inflow of Rs2,485 crore. The order book of the segment stood at Rs9,283 crore as of 30 September 2018.
Power Segment recorded customer revenue of Rs1,059 crore during the quarter ended 30 September 2018, registering a decline of 36 per cent.
L&T’s heavy engineering segment, which comprises manufacture and supply of custom designed, engineered critical equipment and systems to core sector industries like fertiliser, refinery, petrochemical, chemical, oil & gas, thermal & nuclear power, reported fresh orders worth Rs1,296 crore during the quarter ended 30 September 2018. Overseas orders constituted 49 per cent of the total order inflow of the segment during the quarter, mainly driven by buoyancy of activity in oil and gas sector and tightening of emission norms globally.
The order book of the segment stood at Rs4,991 crore as of 30 September 2018 while customer revenue stood at Rs465 crore, showing a growth of 53 per cent over the corresponding quarter of the previous year, led mainly by execution momentum in oil & gas projects. International revenue constituted 52 per cent of the total customer revenue of the segment.
L&T’s defence engineering’ segment, which was newly introduced in Q1 FY 2018-19, comprises defence and aerospace business and shipbuilding business, received orders of Rs1,195 crore during the quarter ended 30 September 2018. However, indigenous defence production remained low as the pace of procurement has remained slow in Q2 FY 2018-19. Also, some high value business prospects are still under evaluation by the defence ministry. 
The order book of the segment stood at Rs11,885 crore as of 30 September 2018. The segment recorded customer revenue of Rs930 crore, which is 6 per cent lower over the corresponding quarter of the previous year. International revenue constituted 8 per cent of the total customer revenue of the segment.
Order book of the electrical and automation (E&A) segment stood at Rs3,058 crore as of 30 September 2018. The segment recorded customer revenue of Rs1,403 crore during the quarter ended 30 September 2018, posting an increase of 14 per cent. 
The hydrocarbon segment recorded an order inflow of Rs2,744 crore during the quarter ended 30 September 2018, mainly driven by receipt of an onshore EPC contract for cracker furnace. The order book of the Segment stood at Rs27,927 crore as of 30 September 2018. Revenue for the segment at Rs3,544 crore recorded a significant growth of 38 per cent year-on-year.
L&T’s IT & Technology Services segment achieved customer revenue of Rs3,573 crore during the quarter ended 30 September 2018, recording a growth of 32 per cent. International revenue constituted 93 per cent of the total customer revenue of the segment for the quarter ended 30 September 2018. 
The financial services segment recorded customer revenue of Rs3,139 crore during the quarter ended 30 September 2018, posting a growth of 30 per cent, driven by growth in loan assets and disbursements in the focused business vertical of rural finance. The operating margin of the financial services segment for the quarter ended 30 September 2018 stood at 25.8 per cent against 13.0 percent during the corresponding quarter of the previous year, on back of higher fee income.
Developmental projects segment reported customer revenue of Rs1,297 crore during the quarter ended 30 September 2018 against Rs1,218 crore recorded in the corresponding quarter of the previous year.