L&T Q2 profit up 7% at Rs 2,770 crore, order book crosses Rs 3 lakh crore

Engineering and construction behemoth Larsen and Toubro (L&T) has reported a 6.83 per cent year-on-year (YoY) growth in consolidated net profit at Rs 2,770.43 crore for the second quarter of the financial year 2019-20 (Q2 FY20).

"The Mumbai-based company had posted a consolidated net profit of Rs 2,593.41 crore in the same quarter last year," L&T said in a filing to the Bombay Stock Exchange.

Consolidated revenue from operations jumped 15.16 per cent to Rs 35,328.45 crore for the quarter ended September 30, 2019, as against Rs 30,678.13 crore in the year-ago period.  The International revenue during the quarter stood at 12,118 crore, which constituted 34 per cent of the total revenue, L&T said in the exchange filing.

The company has reported deferred tax gain of Rs 201 crore during the quarter under review.

During the July-September quarter, the company bagged new orders worth Rs 48,292 crore at the group level, registering a YoY growth of 20 per cent. International orders during the quarter stood at Rs 16,675 crore, which constituted 35 per cent of the total order inflow, it said.

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On a cumulative basis, the order inflow for the half year ended September 30, 2019 stood at 86,992 crore, growing at 16 per cent over the corresponding period of the previous year.

"With the surge in order intake, the company crossed the 3 lakh crore order book milestone with the consolidated order book at 303,222 crore as of September 30, 2019 and with international orders constituting 22 per cent of the total order book," L&T said.

Segment-wise, infrastructure segment secured fresh orders of Rs 15,669 crore, lower by 33 per cent compared to the previous year.  While hydrocarbon segment bagged orders worth Rs 14,851 crore, heavy engineering segment secured orders valued Rs 680 crore, a decline of 48 per cent y-o-y mainly due to deferment of orders in refinery, oil and gas sector and fertiliser and petrochemical projects.

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Defence engineering segment received orders of Rs 573 crore, while power segment secured orders worth Rs 4,315 crore for the quarter ended September 30, 2019.

As on September 30, 2019, L&T group holds 60.55 per cent stake in Mindtree, which is now a promoter of the Bengaluru-based IT firm. The construction major had acquired 9.87 crore equity shares in Mindtree as on July 2, 2019, through open offer.

"Subsequent to acquisition, the financials have been consolidated from the current quarter and is reported under IT and TS segment," the company said.

Ahead of Q2 results, shares of L&T closed trade at Rs 1,430.95 apiece, down 0.76 per cent, on the BSE on Wednesday.

Edited by Chitranjan Kumar