Larsen and Toubro announced their Q2 results on Wednesday after the market close. 

What Happened: L&T saw its net profit surge 5.4% from the previous year to ₹3,395 crore. The engineering and construction major's operational revenue surged 20.6% year on year to ₹61,555 crore. The numbers came ahead of analysts' estimates for the company. 

The company's total order book reached ₹5.10 lakh crore in the September quarter. This was a 7% growth from the March 2024 quarter. International orders made up 40% of the total order book. The company saw an order inflow of ₹80,045 crore in Q2. 

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Brokerage Views: Bernstein maintained an "outperform" call with a target price of ₹3,891. The global research firm said the company's international hedge is working, as evidenced by the quarter's performance. 

This was another quarter of strong execution and stellar working capital position, the brokerage firm said. Order inflow fell due to the high base last year. While the management retained their guidance, the research firm saw it as a tough task to achieve. It added that execution and working capital made up for the margin and order inflow. 

Nomura kept a "buy" call with a target price of ₹4,100. The research firm said the company's results beat consensus and the stock offers favourable risk reward. The FY25 order inflow guidance looks achievable after the Q2 surprise, the brokerage said. 

CLSA also kept an "outperform" call with a target price of ₹4,151. The strength of the business model showed a third consecutive quarter of engineering and construction margin expansion. The brokerage said there was a positive surprise across inflows, execution and working on a high base. CLSA added that the biggest positive in Q2 was orders inflows beating the consensus despite being a soft India quarter. 

Price Action: Shares of L&T surged 4.15% to ₹3,549.95 on Thursday morning.

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