Larsen & Toubro Ltd (L&T) has maintained its FY23 revenue, and order inflow growth guidance at 12-15 percent. The company does not plan to revise it upwards despite the strong performance in the first quarter of 2022-23 on concerns over the slowing global growth rate, said Chief Financial Officer R Shankar Raman.
On July 26, L&T reported 45 percent year-on-year growth in consolidated net profit at Rs 1,702 crore in Q1FY23. Consolidated revenues for the engineering and construction major were higher by 22.2 percent year-on-year at Rs 35,853 crore.
“This quarter saw a lot of pickup in activities as COVID concerns are receding. However, concurrently, geopolitical developments and inflation worries sweeping through the world have unsettled the global economy. There are several commentaries that are being put out about how the global economy is likely to fail in the coming months; it is going to be interesting to watch these developments as India picks up momentum,” Raman said.
The company’s management said that the June quarter, which is typically a seasonally weak quarter, saw high order execution and robust order inflow which resulted in its highest ever order book at Rs 3,63,448 crore at June end.
“We are in business only when there are people who are investing. We are seeing a certain amount of global stress in terms of growth. All major economies are recalibrating their growth and India will be no exception to this. We need to wait and watch as to how it pans out. One or two quarters' performance would be too early to declare that we will up the guidance,” the CFO said.
The International Monetary Fund has lowered the global growth forecast for the calendar year 2022 by 40 basis points to 3.2 percent and by 70 basis points to 2.9 percent for 2023. One basis point is one-hundredth of a percentage point.
L&T secured orders worth Rs 41,805 crore at the group level during the quarter ended June 30, 2022, up 57 percent from the corresponding quarter a year ago.
The company saw a pick up in order inflow in FY23Q1 from segments such as infrastructure, hydrocarbon and defence. While there was a pick-up in order finalisation in the domestic order, international order inflow was strong and accounted for 43 percent of the total order flow of Rs 41,805 crore.
The management said it sees green shoots in private sector investments in certain segments, particularly in minerals and metals, healthcare, information technology and services, data centres, airports and railway station developments.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
