Larsen & Toubro, the engineering and infrastructure major, on January 25 reported a 4.9 percent year-on-year growth in Q3FY21 consolidated profit at Rs 2,467 crore, with receiving highest ever orders in a quarter on receipt of prestigious and large contracts. The bottomline was ahead of CNBC-TV18 poll estimates which was pegged at Rs 2,110 crore for the quarter.
The profit growth was largely attributed to higher profit from IT a TS segment and sale of commercial property in realty. PAT also included gain on divestment of Rs 209 crore from discontinued operations for the quarter ended December 2020, towards further adjustments accrued against the sale of the electrical & automation business to Schneider Electric SE and sale of the UK based Marine control & automation systems subsidiary to Rolls-Royce Power Systems AG, L&T said.
During the quarter, the company received the biggest EPC contract in the
country and first of its kind – the prestigious High Speed Rail order.
With this, “the L&T Group order inflow for the quarter ended December 2020 registered a strong growth of 76 percent over the corresponding quarter of the previous year and stood at Rs 73,233 crore,” the company said in its BSE filing.
International orders during the quarter constituted 14 percent of the total order inflow. On a cumulative basis, “the order inflow for the nine months
period ended December 2020 stood at Rs 1,24,846 crore, the company said.
The consolidated order book of the Group stood at a record Rs 3,31,061 crore as of December 2020, registering a robust growth of 9 percent over the March 2020 level.
Consolidated revenue from operations at Rs 35,596.4 crore for the quarter ended December 2020 declined by 1.8 percent year-on-year, missing CNBC-TV18 poll estimates which was pegged at Rs 37,309 crore.
“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 percent over the corresponding quarter of the previous year,” L&T said.
At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.9 percent year-on-year to Rs 4,279.8 crore and margin expanded 60 bps YoY to Rs 12 percent in the quarter ended December 2020, which both were better than poll estimates of Rs 4,163 crore and 11.2 percent respectively.
Infrastructure business, which contributed 45 percent to total revenue, declined 7 percent to Rs 15,973.2 crore with its earnings before interest and tax (EBIT) falling 6.5 percent but margin improved by 3 bps compared to corresponding period.
Revenue from its hydrocarbon business grew by 0.7 percent year-on-year to Rs 4,422 crore with its EBIT unchanged at Rs 493 crore, while defence engineering business registered a 2 percent YoY growth at Rs 1,024 crore with EBIT falling 20.7 percent in Q3FY21.
Heavy engineering segment revenue declined 0.4 percent to Rs 803.4 crore in Q3FY21 with EBIT declining 15.1 percent, but power business reported a 29.4 percent YoY growth at Rs 903.7 crore with its EBIT down 37.1 percent in the quarter ended December 2020.
The stock has given a strong return of over 50 percent since the start of October last year, better than the BSE Capital Goods index (up 45 percent) and BSE India Infrastructure (up 36 percent) in same period.
News Source:- Moneycontrol