Larsen & Toubro’s net profits have been rising due to a higher increase in income as compared to expenditure over the last four quarters.
Larsen & Toubro will announce its financial results for the first quarter of the financial year 2022-23 (FY23) on Tuesday. The company has seen a steady rise in net profits over the last four quarters.
In Q1FY22, the company recorded a net profit of Rs 749.97 crore. In Q2FY22, the profits rose to Rs 2,025.44 crore. The net profits fell to Rs 1,670.84 in Q3FY22, the quarter ending September 2021. The profits rose to Rs 2,901.15 crore in Q4FY22.
The rise in the profits is mainly due to a growth in the company’s total income, despite a steady hike in the total expenditure across the quarters.
The expenditure rose from Rs 12,343.42 crore in the first quarter of FY22 to Rs 33,877.54 in the last quarter. But the income has increased from Rs 13,109 crore in Q1FY22 to Rs 37,439.22 in Q4FY22.
The market volatility that led to a fall in the company’s share price cost Rs 197.47 crore in the last quarter. This can be compared to a profit of Rs 1,242.44 crore in Q3FY22, Rs 521 crore in Q2FY22 and Rs 362.83 crore in Q1F22.
The construction sector in India has been under severe stress due to a rise in oil prices since the start of the calendar year 2022. Crude oil prices have stayed above the $100 per barrel mark for the good part of the year. According to a report by Economic Times, road minister Nitin Gadkari said that the high price of diesel is putting pressure on the construction industry.
However, with the global economies opening up post-Covid pandemic, the sector might see good growth, according to experts.
On Monday, the company’s shares closed at a three-month high of Rs 1,727.25, 2.5 per cent higher than the previous close.