L&T Q1 consolidated net surges four-fold at Rs 1,174 cr on higher revenue

The company's topline in the period under review stood at Rs 29,334.73 crore, up 38% from the same period last year

Larsen & Toubro reported a consolidated net profit attributable to the owners of the company at Rs 1,174 crore in the June quarter, up nearly four times from the same period last year on the back of increased revenues.

It had reported a bottomline of Rs 303 crore in the corresponding period last year.

The company’s topline in the period under review stood at Rs 29,334.73 crore, up 38 per cent from the same period last year.

“Though the topline in the June quarter was up from last year, it has actually come to the pre-COVID levels noted in first quarter of FY20 which is a more comparable scenario given that last year first quarter was COVID-19 hit,” R. Shankar Raman, chief financial officer at Larsen &Toubro informed during earnings conference call.

As per Bloomberg estimates, the company’s topline was expected to be at Rs 29,329 crore, while the bottomline was seen at Rs 1,503 crore in the period under review.

Among the company’s businesses, the infrastructure segment contributed the highest revenue to the consolidated topline at Rs 10,543.46 crore followed by IT&Technology Services at Rs 7,241 crore and hydrocarbon at 4,201 crore.

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Infrastructure segment secured orders of Rs 11,023 crore, during the quarter ended June 30, 2021, registering a marginal decline over the corresponding quarter of the previous year, mainly due to pandemic induced delay in tendering activities and finalization of orders, said the company.

International orders at Rs 1,058 crore constituted 10 percent of the total order inflow of the segment during the quarter.

The company’s consolidated EBITDA margin during the quarter  stood at 10.8 percent as against 7.6 percent in the same period last year. The company’s EBITDA during the quarter was at Rs 31.7 billion, up 96 percent from last year.  

Project progress was impacted during the quarter with regional lockdowns, shortage of industrial oxygen and supply chain disruptions. The international revenues during the quarter at Rs 11,186 crore constituted 38 percent of the total revenue.

The company bagged orders worth Rs 26,557 crore at the Group level during the quarter ended June 30, 2021 registering a growth of 13 per cent over corresponding period of the previous year.

Also, during the quarter, orders were received in various segments like Metros, Rural Water Supply, Minerals and Metal, Residential, Power Transmission and Distribution, Power and Hydrocarbon Offshore sectors, said the company.

International orders at Rs 9,045 crore during the quarter comprised 34 percent of the total order inflow.

The consolidated order book of the group was at Rs 323,721 crore on June 30, 2021, with international orders at 20 percent of the total order book.

Going ahead, the company’s focus continues to be on efficient execution of its large order book, working capital reduction, cost optimization through use of digital technologies aimed at operational efficiencies and driving an agile Balance Sheet, said the company.

With inputs costs having gone up in the last few months mainly in steel and cement, the management informed that it has been in talks with clients as well as material suppliers on pricing of the commodities and are also looking to hedge in order to control increasing costs.

In terms of international order book outlook, the management said that the West Asia region is expected to bounce back soon with orders coming from hydrocarbons, power transmission and water.