India's Larsen & Toubro beats Q2 profit expectation on order inflow surge

FILE PHOTO: A man walks past the Larsen and Toubro (L&T) head office in Mumbai

BENGALURU (Reuters) - Indian infrastructure company Larsen & Toubro Ltd reported a better-than-expected second-quarter profit on Monday, on the back of a surge in order inflows.

Profit grew by 22.5% to 22.29 billion rupees ($269.35 million) in the three months ended Sept. 30, the Mumbai-based company said in an exchange filing.

Analysts on average had expected a profit of 21.87 billion rupees, according to Refinitiv IBES data.

L&T's results are often seen by analysts as an indication of capital expenditure in the economy because of the various public and private infrastructure projects the company undertakes.

India has seen a resurgence of investments in infrastructure, with many buildings, factories, metros, and other project works underway following a two-year-long pandemic-induced slump.

L&T's total revenue from operations for the quarter rose 22.97% to 427.63 billion rupees, primarily driven by order inflows from the infrastructure projects segment having more than doubled to 250.6 billion rupees.

Total consolidated order book rose about 2.8% sequentially to end the quarter at 3.73 trillion rupees ($45.07 billion), the company added.

As of last close, L&T shares have jumped 6.7% so far this year.

($1 = 82.7540 Indian rupees)

(Reporting by Atreya Raghavan in Bengaluru; Editing by Janane Venkatraman)