Business

Net profit rises 5% to ₹2,467 cr; order book at record high

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Larsen and Toubro (L&T) on Monday reported that its consolidated net profit rose 4.87% to 2,466.71 crore in December quarter compared to 2,352.12 crore in the same quarter last year.

L&T’s order book stands at record high in a single quarter, at 3.31 lakh crore, the company said its the highest-ever orders booked in a quarter. The company said that its highest-ever order was received due to many large contracts including the biggest EPC contract in the country ever – the High Speed Rail order.

The international orders constitute 20% of the total order book.

International orders during the quarter constituted 14% of the total order inflow. On a cumulative basis, the order inflow for the nine months period ended December 31, 2020 stood at 124,846 crore, the company said in a regulatory filing.

Revenue from operations decreased 1.78 per cent year-on-year to 35,596.42 crore from 36,242.68 reported in the year-ago quarter.

“The Covid-19 restrictions continued to have an impact on project site execution and Hyderabad metro operations that led to a marginal decline in revenue of 2% over the corresponding quarter of the previous year,” EPC major stated.

International revenue during the quarter stood at 12,967 crore, which constituted 36% of the total revenue. The consolidated gross revenue for the nine months period is at 87,891 crore.

Heavy engineering segment secured orders at 998 crore during the quarter, almost a 100 per cent YoY growth led by orders contracted in the nuclear business. International orders constituted 61 per cent of the total order inflow. Other segments also saw decent to robust growth in orders.

Power segment, however, did not secure any major order during the quarter. L&T said it was due to the absence of greenfield thermal power project opportunities.

It’s Defence Engineering Segment received orders worth 705 crore during the quarter ended December 31, 2020 which were mainly domestic, registering substantial growth on a low base of the corresponding quarter of the previous year. The order book of the segment stood at 8,795 crore as on December 31, 2020, with export orders constituting 13 per cent. Customer revenue from the segment was 1,022 crore with Ebitda margin at 16.9 per cent. The reported total revenue came in at 1,024 crore, up 2 per cent YoY.

The Hydrocarbon Segment secured orders valued at 12,820 crore during the quarter ended December 31, 2020, supported by receipt of some large value domestic orders in the petrochemicals space. International orders constituted 4% of the total order inflow of the segment during the quarter.

The segment order book stood at t 45,887 crore as at December 31, 2020, with the international order book constituting 36%.

IT & Technology Services Segment, which comprises L&T Infotech, L&T Technology Services and Mindtree reported customer revenue of t 6,505 crore during the quarter ended December 31, 2020, registering y-o-y growth of 7%, led by L&T Infotech. Overseas sales constituted 93% of the total customer revenue of the segment for the quarter ended December 31, 2020.

Customer revenue from IT and Financial Services segment stood at 6,505 crore and 3,401 crore, respectively, up/down 7 per cent/4 per cent YoY.

“The post lockdown pent-up demand, improved prospects in affordable residential real estate, green shoots in cement and steel capex outlays, are signs of improved confidence on economic revival. However, in the merdium term, significant private sector-led capex could continue to remain in wait and watch mode,” L&T said in a statement.

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