The engineering and construction major's consolidated net profit fell 16.70% to Rs 2,054.74 crore on 11.14% increase in net sales to Rs 39,562.92 crore in Q3 December 2021 over Q3 December 2020.
On a consolidated basis, Larsen & Toubro (L&T)'s profit before tax and exceptional items fell 8.59% to Rs 3,555.55 crore in Q3 December 2021 over Q3 December 2020.L&T said that the increase in revenue reflects an improving project execution momentum and robust growth in the IT&TS portfolio. International sales during the quarter at Rs 14,541 crore constituted 37% of the total revenue.
The consolidated net profit after tax declined over the corresponding quarter of the previous year, which had an instance of a sale of commercial property in realty business and gain on divestment from discontinued operations of the electrical & automation business.
The company bagged orders worth Rs 50,359 crore during the quarter ended 31 December 2021, registering decline of 31% over the corresponding period of the previous year, since the previous year had the benefit of the company securing the biggest ever EPC contract for Mumbai Ahmedabad High Speed Rail in the Infrastructure segment. During the quarter, orders were received in various businesses viz hydrocarbon offshore, metros, rural water supply, minerals and metal, public space, health infrastructure and power transmission and distribution. The International orders at Rs 20,521 crore during the quarter comprised 41% of the total order inflow, with receipt of large value international orders in Hydrocarbon Offshore.
The consolidated order book of the group was at Rs 340,365 crore as on 31 December 2021, at record levels, with international orders having a share of 24%.
L&T's infrastructure segment recorded customer revenues of Rs 18,345 crore for the quarter ended 31 December 2021, registering y-o-y growth of 16% with a good pick up in execution momentum of the large value orders in the portfolio. International revenues constituted 24% of the total customer revenues of the segment during the quarter.
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The segment order book stood at Rs 248,900 crore as on 31 December 2021, with the share of international orders at 19%.
The power segment recorded customer revenues of Rs 1,066 crore for the quarter ended 31 December 2021, recording a growth of 19% over corresponding quarter of the previous year with projects in the order book gaining execution impetus. The order book of the segment was at Rs 10,446 crore as on 31 December 2021, with the share of international orders at 5%.
The Heavy Engineering segment posted customer revenues of Rs 683 crore for the quarter ended 31 December 2021, recording a y-o-y decline of 7% due to a large project nearing completion in Nuclear Equipment business and new orders in their early stage of execution. International sales comprised 47% of the total customer revenues for the quarter.
The order book of the segment was at Rs 4,937 crore as on 31 December 2021, with the share of export orders at 36%.
The Defence Engineering segment recorded customer revenues of Rs 791 crore during the quarter ended 31 December 2021, recording a y-o-y decline of 23% due to tapering of execution of jobs in progress in the Shipbuilding Business. The share of international revenues was 9% of the total customer revenues for the quarter.
The order book of the segment was at Rs 8,201 crore as on 31 December 2021, with export orders constituting 7% of the total order book.
The Hydrocarbon segment posted customer revenues of Rs 4,880 crore during the quarter ended 31 December 2021, recording a y-o-y growth of 11% with peaking of execution activities in the Onshore domestic vertical. International revenues had a share of 43% of the total customer revenues for the quarter. The segment order book was at Rs 53,676 crore as on 31 December 2021, with the international order book constituting 60%.
The IT & Technology Services (IT&TS) segment, which comprises L&T Infotech, L&T Technology Services and Mindtree, recorded customer revenues of ₹ 8,397 crore during the quarter ended 31 December 2021, recording q-o-q growth of 7% & y-o-y growth of 29%, reflecting a surge in demand for more technology focused offerings. International billing contributed 90% of the total customer revenues.
In its outlook, L&T said that the global macroeconomic environment is likely to slow down with vaccine inequality and rapid spread of the Omicron variant. The world's largest economies are expected to see a delay in the recovery process with deceleration in activity, diminished fiscal support, rising inflation and lingering supply bottlenecks. With oil prices holding firm and coordinated production from OPEC+ countries, investment in GCC countries is likely to be boosted. There is an increasing interest in investments in the renewables segment aided by the commitment to net zero targets and this will open up a new range of opportunities.
In the backdrop of the current economic environment, the company continues its planned path of winning targeted orders, focus on profitable execution of its large order book, leverage the strong growth momentum in its IT & TS portfolio and along with many other value enhancing measures, is committed to create sustainable long term returns to its stakeholders.
L&T is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide.
Shares of L&T fell 0.65% to Rs 1898.80 on Friday, 28 January 2022.
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