L&T Q1 profit grows to Rs 1,174 crore; revenue up 38% to Rs 29,335 cr

Construction and engineering major Larsen & Toubro has posted consolidated profit after tax (PAT) of Rs 1,174 crore in the April-June quarter, registering y-o-y growth of 287 per cent over the corresponding quarter of the previous year.

The consolidated revenue for the quarter grew 38 per cent y-o-y to Rs 29,335 crore, driven by improved execution. The order inflow has registered a growth of 13 per cent. L&T attributed high revenue to a healthy execution of projects despite the second wave of Covid-19 affecting operations at many locations.

L&T said project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions. The international revenues during the quarter stood at Rs 11,186 crore, which is 38 per cent of the company's revenue.

The company bagged orders worth Rs 26,557 crore at the group level during the quarter ended June 30, 2021, registering 13 per cent growth over corresponding period of the previous year. "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," L&T said in a stock exchange filing.

L&T's consolidated order book stood at Rs 323,721 crore as on June 30, 2021, with international orders at 20 per cent of the total order book.

Among its various segments, the power segment recorded order inflow of Rs 911 crore for Q1. It recorded Rs 759 crore revenue for the quarter ended June 30, 2021. The heavy engineering segment recorded customer revenues of Rs 548 crore for Q1, recording a y-o-y 45 per cent growth.

The defence engineering segment customer revenue grew 46 per cent to Rs 689 crore during the quarter, while the hydrocarbon segment grew 37 per cent YoY to earn Rs 4,190 crore revenue.

IT & Technology Services (IT&TS) segment grew 20 per cent YoY to earn a revenue of Rs 7,222 crore, and financial services segment recorded  a 7 per cent decline in its income from operations at Rs 3,061 crore. The developmental projects segment grew over 100 per cent and generated Rs 1,126 crore revenue.

In its outlook for the current financial year, L&T has said with the waning of the second wave of the pandemic and  lockdown restrictions progressively being eased in the recent weeks, signs of pick-up in economic activity is visible. "The economy is expected to gain lost ground, aided by the fiscal stimulus packages announced, adoption of new Covid compatible occupational models by businesses and the vaccination efforts gathering momentum," the company said.

L&T stock closed Rs 12.75 or 0.79 per cent down at Rs 1,599, compared to its previus session close of Rs 1,611.75 crore on the National Stock Exchange.

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