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L&T Q2 results | Adjusted profit grows 56% to Rs 1,723 crore, order inflow up 50%

The reported profit for the quarter at Rs 1,819.45 crore was 67 percent lower from Rs 5,520.27 crore in the year-ago period

October 27, 2021 / 06:32 PM IST
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Larsen & Toubro, the engineering and infrastructure major, has clocked a 56 percent year-on-year growth in consolidated adjusted profit at Rs 1,723 crore in the September 2021 quarter, driven by higher profits in the IT&TS portfolio and improved margins from the projects & manufacturing portfolio as the coronavirus-induced stress in previous periods progressively wanes.

The adjusted profit excluded exceptional items and discontinued operations. In the year-ago period, the profit was boosted by one-time gain on divestment of electrical and automation business to Schneider Electric, France.

The reported profit for the quarter at Rs 1,819.45 crore declined by 67 percent compared to Rs 5,520.27 crore in the year-ago period .

"The reported profit included Rs 144 crore gain on divestment of stake in hydel power plant in Uttarakhand (a part of the development projects segment) and tax expenses of Rs 47 crore arising on the transfer of the NxT Digital Business from the Parent to Mindtree," the company said.

The company's consolidated revenue was at Rs 34,773 crore, registering a 12 percent YoY growth.


"The increase is attributed to project execution momentum with the easing of regional lockdowns on progressive vaccination coverage and industry-leading growth in the IT&TS portfolio," it said.

L&T bagged orders worth Rs 42,140 crore during the quarter, registering a robust growth of 50 percent over the corresponding period in the previous year.

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"Orders were received in various segments like oil & gas, metros, rural water supply, minerals and metal, public space and power transmission and distribution," said the company, adding international orders at Rs 22,116 crore comprised 52 percent of the order inflow.

On a cumulative basis, the order inflow for the half-year ended September 2021 stood at Rs 68,697 crore, rising 33 percent over the corresponding period of the previous year.

The consolidated order book of the L&T group was at Rs 3.3 lakh crore as on September 2021, at near-record levels, including international orders share of 23 percent and infrastructure segment orders share of 73.4 percent (at Rs 2.42 lakh crore).

"With the progressive weakening of the second Covid wave and sustained vaccination efforts, the overall business environment is looking more positive and this should lead to the Indian economy registering good growth in the medium term," said L&T.

At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 19.8 percent year-on-year to Rs 3,994.8 crore and margin expanded to 11.5 percent, up 80 bps compared to the corresponding period last fiscal.

EBITDA excludes taxes, the cost of capital investments, and expenses associated with debt like interest and serves purely as an indicator of corporate performance. One basis point is one-hundredth of a percentage point.

The infrastructure segment recorded a 7 percent year-on-year growth in revenues at Rs 13,923 crore, with better execution momentum as workforce availability and supply chain improved after the lifting of lockdown,  the company said.

The infrastructure segment secured orders of Rs 12,108 crore, a decline of 17 percent over the corresponding quarter of the previous year.

Heavy engineering division reported revenue at Rs 624 crore for the quarter, rising 4 percent on improved project execution. The defence engineering segment clocked 10 percent YoY growth in revenue at Rs 845 crore on the back of strong execution of projects in the weapons and engineering system business.

Hydrocarbon business posted revenues of Rs 4,867 crore in Q2FY22, growing year-on-year growth of 20 percent with peaking of execution activities in the onshore vertical, said the company.

The L&T share price fell 0.65 percent to close at Rs 1,782.80 ahead of the earnings announcement.
Moneycontrol News
first published: Oct 27, 2021 05:41 pm

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