(PTI) Engineering and construction major Larsen & Toubro (L&T) on Monday reported a 26 per cent rise in consolidated net Profit After Tax (PAT) at ₹2,819.20 crore for the quarter ended September on the back of higher revenue from operations.
The company had posted a consolidated net PAT of ₹2,231.33 crore in the year-ago period, L&T said in a filing to BSE.
During a conference call, company's whole-time director and Chief Financial Officer (CFO) R Shankar Raman said that the combination of stable margin on a growing revenue and good performance by other elements contributing to income has led to profit growth.
The consolidated revenue from operations increased by 22.9 per cent to ₹42,762.61 crore from ₹34,772.90 crore in the July-September quarter a year ago, the filing added.
The CFO further said that the company was in the process of divesting its mutual fund business from the financial services business.
"We have received all regulatory clearances and we expect to consummate the transaction in the current quarter," he explained.
As L&T Infrastructure Development Projects Limited (L&T IDPL) which is a toll road concession company, it is entering into a phase of final exit arrangement.
"We do hope that like in the case of mutual fund we should be able to sign some documents signalling the commencement of divestment procedure...We are working hard to make sure that we complete the transaction by the end of current fiscal," he explained.
The company is also looking at the best way to divest Nabha Power Plant -- which is owned and operate by L&T.
"It is not a distressed sale. That's wherein lies the challenge, because the asset has to be valued for what it is worth... We will wait for a while but it is very much on our plan to see how we can profitably exit that," Raman explained.
With regard to Hyderabad metro, he said that it is going to be preparatory work for eventual exit.
"Lighter balance sheet and higher ridership will ensure that the asset becomes more ready for divestment. As far as timeline is concerned ASAP (as soon as possible). But these things we cannot completely control," Raman said.
The company recorded orders worth ₹51,914 crore at the group level during the July-September period, registering a growth of 23 per cent over the corresponding period of the previous fiscal.
During the second quarter, the company bagged orders across various sectors like public spaces, nuclear power, irrigation and renewable. Of the total order inflow, international orders were worth ₹17,341 crore.
The consolidated order book of the group stood at ₹3,72,381 crore as on September 30, 2022.
On the outlook, the company said L&T's strategy of focusing on projects, hi-tech manufacturing and IT services in a fast changing global business environment is likely to provide improved returns to all its stakeholders.