L&T Q3 Results: Net Profit Jumps 15 Per Cent To Rs 2,947 Crore; Misses Estimates
L&T's total expenses for the quarter jumped over 19 per cent to Rs 51,194 crore, overshadowing an 18.8 per cent rise in revenue from operations, its slowest top line growth since the past two quarters
Engineering behemoth Larsen and Toubro (L&T) clocked third quarter (Q3) profit below estimates on Tuesday as higher costs countered sustained infrastructure demand, as reported by Reuters. According to the report, L&T’s consolidated net profit rose 15 per cent to Rs 2,947 crore ($355 million) for the quarter ended December 31. However, the Q3 earnings fell short of analysts' estimate of Rs 3,304 crore, as per LSEG data.
Owing to the variety and scale of orders under its portfolio, L&T's results are often seen as a bellwether for capital expenditure in the Indian economy. Total expenses for the quarter jumped more than 19 per cent to Rs 51,194 crore, overshadowing an 18.8 per cent rise in revenue from operations, its slowest top line growth since the past two quarters.
An upbeat capital expenditure environment, helped by the government's spending push ahead of the general polls this year, had benefitted Indian construction companies. However, analysts said the capex enthusiasm is moderating as elections near, with slowed tendering activity amid fewer project announcements.
Shares of L&T closed at Rs 3,633.40 apiece, down 2.02 per cent, ahead of the Q3 results.
NTPC Q3 Profit Grows 7 Per Cent
On the other hand, state-owned power major NTPC on Monday logged over 7 per cent rise in consolidated net profit to Rs 5,208.87 crore for the December 2023 quarter, aided by energy sales through trading. Its net profit stood at Rs 4,854.36 crore in the year-ago period, a BSE filing said.
NTPC's total income fell to Rs 43,574.65 crore in the quarter from Rs 44,989.21 crore in the same period a year ago. The company's expenses rose to Rs 38,782.22 crore from Rs 37,007.51 a year ago.
"Revenue from operations for the quarter and nine months ended 31 December 2023 include Rs 2,117.12 crore and Rs 7,012.90 crore, respectively (Previous quarter and nine months Rs 1,984.92 crore and Rs 6,039.14 crore, respectively) on account of sale of energy through trading," the filing said.
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