L&T Q4 Result: Profit Rises 3% to Rs 3,293 Crore, Order Inflow Drops 12% to Rs 50,651 Crore
The consolidated order book of the L&T group stood at Rs 3,27,354 crore as of March 2021, a robust growth of 8 percent over March 2020.
Engineering and infrastructure major Larsen & Toubro on May 14 reported consolidated profit at Rs 3,292.81 crore for the quarter ended March 2021, registering a 3 percent growth compared to the year-ago quarter. This profit was from continuing as well as discontinued operations.
Profit from continuing operations at Rs 3,820.16 crore increased 11.4 percent YoY in Q4. Higher tax cost (up 116 percent YoY to Rs 2,086.71 crore) and lower-than-expected revenue growth impacted profitability.
The company in its BSE filing said the order inflows for January-March 2021 at Rs 50,651 crore lowered by 12 percent over the corresponding period of the previous year with the deferment of awards.
“Significant orders during the quarter were received in various segments like factories, hydel and tunnel, metros, special bridges, nuclear power, rural water, renewable energy, hydrocarbon offshore and minerals and metal sector,” the company explained.
International orders at Rs 18,439 crore during the quarter is at 36 percent of the total order inflow, with receipt of biggest solar PV plant order and Transmission line orders, said the company.
At the group level, during the year ended March 2021, L&T said received orders worth Rs 1,75,497 crore, registering decline of 6 percent compared to the previous year in the face of COVID disrupted business environment in first half of the year.
International orders at Rs 47,951 crore during the year dropped to 27 percent of the total order inflow, with subdued overseas opportunities, especially in Middle East, the company added.
The consolidated order book of the group stood at Rs 3,27,354 crore as of March 2021, a robust growth of 8 percent over March 2020.
Consolidated revenue from operations grew by 8.7 percent year-on-year to Rs 48,087.9 crore in January-March 2021 quarter, missing CNBC-TV18 poll estimates which was pegged it at Rs 51,700 crore for the quarter.
“The year-on-year 9 percent growth in revenue evidenced return to pre-COVID levels of activity. The sequential growth in quarterly revenue was at 35.1 percent, with execution activities normalising on easing of COVID-19 restrictions, prior to onset of the second wave of the pandemic, L&T said.
In the pandemic year, FY21, consolidated profit including profit from discontinued operations at 11,583 crore registered growth of 21 percent YoY.
The consolidated PAT included a charge of Rs 3,620 crore towards exceptional items and profit from discontinued operations Rs 8,238 crore, mainly comprising of gain on divestment of electrical and automation business.
Consolidated revenue during the year declined 6.5 percent to Rs 1,35,979.03 crore compared to previous year. “The decline in revenue attributed to revenues lost due to lockdown related disruptions in the first two quarters of the year and new norms of social distancing, quarantine procedure and safety protocols, coupled with supply chain disruption impacting project execution progress, though with declining severity, throughout the year,” the infrastructure major said.
Infrastructure segment, which contributed 55 percent to total revenue, registered a 4.4 percent year-on-year growth in revenue at Rs 26,436.69 crore and its earnings before interest and tax (EBIT) grew by 6.9 percent YoY to Rs 2,795.52 crore for the quarter ended March 2021.
Hydrocarbon business grew by 8.9 percent YoY to Rs 5,421.69 crore with EBIT rising 31.1 percent to Rs 658.32 crore in Q4FY21.
Heavy Engineering segment recorded healthy 54.2 percent YoY growth at Rs 1,081.94 crore in revenue and 165.6 percent increase in EBIT at Rs 280.61 crore for the quarter.
Defence engineering also witnessed massive 42.8 percent increase in revenue at Rs 1,140.84 crore with EBIT growing 225.2 percent to Rs 302.83 crore compared to year-ago quarter.
L&T has recommended a final dividend of Rs 18 per equity share for the approval of shareholders.