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Last Updated : Jul 23, 2019 06:11 PM IST | Source: Moneycontrol.com

L&T Q1 profit grows 21% to Rs 1,473 cr, retains FY20 order inflow & sales growth guidance

Consolidated order book of the group stood at Rs 2,94,014 crore at the end of June 2019

 
 
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Engineering & infrastructure major Larsen & Toubro on July 23 reported a 21.2 percent growth in June quarter consolidated profit at Rs 1,473 crore year-on-year, with order inflow rising 11 percent.

Profit in the corresponding quarter last fiscal was at Rs 1,129 crore. Profit from continuing operations increased 20.5 percent YoY to Rs 1,361 crore.

Larsen & Toubro in its BSE filing said its consolidated revenue was at Rs 29,636 crore from continuing operations, growing 10 percent year-on-year on good execution progress.

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Company retained its full year order inflow growth guidance at 10-12 percent and sales growth forecast at 12-15 percent, said Raman who expects private sector capex to be subdued for 12-18 months.

The company won new orders worth 38,700 crore at the group level during the quarter ended June 2019 registering a growth of 11 percent, which included international orders of Rs 9,005 crore.

"Order wins in infrastructure and power segments were the major contributors to the order inflow during the quarter. While orders from the central and state governments were affected during the general elections, strong PSU and private sector orders enabled growth for the quarter," L&T said.

Infrastructure segment secured fresh orders of Rs 17,497 crore during the quarter, lower by 10 percent compared to the previous year. "Order wins were mainly from the airport sector, gold beneficiation award in Saudi, water supply & distribution order in Sri Lanka, a notable desalination plant order in Gujarat and an order for a Defence telecom network," L&T said.

Consolidated order book of the group stood at Rs 2,94,014 crore at the end of June 2019, including infrastructure orders of Rs 2,18,825 crore.

At operating level, earnings before interest, tax, depreciation and amortisation increased 20.4 percent to Rs 3,319 crore and margin expanded 100bps to 11.2 percent compared to year-ago.

Infrastructure segment, which contributed nearly 50 percent to total revenue, registered a 13.8 percent year-on-year growth in revenue at Rs 14,037.6 crore and at operating level, its earnings before interest & tax grew by 6 percent but margin contracted 40 bps YoY.

The execution of orders received towards later part of quarter has not yielded during the quarter and will be seen in coming quarters, hence the same not reflected in margin, R Shankar Raman, CEO said while addressing press conference.

Power business degrew by 48 percent year-on-year to Rs 563.2 crore on lower opening order book. "We expect power segment sales to pick-up from October," Raman said.

Hydrocarbon business increased by 7.2 percent to Rs 3,768.7 crore YoY with strong EBIT growth at 18.1 percent and margin expansion of 60bps.

Heavy engineering business registered a solid growth of 163 percent year-on-year at Rs 991.5 crore but at operating level, its EBIT grew by 7 percent and margin contracted sharply by 1,310bps compared to year-ago.

L&T said defence engineering segment registered a 32.1 percent year-on-year growth at Rs 969.1 crore in June quarter and its earnings before interest & tax also grew sharply by 160 percent with margin expansion of 630 bps YoY.

The engineering major classified electrical & automation business as discontinued operations, as it sold the same to Schneider Electric. For which, it already received approval from Competition Commission of India and the sale is likely to be completed within the next one year, company said.

Electrical & automation business grew by 7.5 percent to Rs 1,423.7 crore and at operating level, its EBIT increased by 31.4 percent and margin expanded by 220bps YoY.

In addition, the infrastructure major acquired controlling stake of over 60.6 percent in Mindtree which resulted into subsidiary of the company.

Mindtree's financials will be part of consolidated results from July-September quarter, Raman said.

L&T is going to announce new CEO for Mindtree on August 2, 2019.

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First Published on Jul 23, 2019 04:46 pm
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