L&T's Q1 profit after tax was impacted mainly due to lower revenue, credit provisions in the financial services business and under-recovery of overheads.
Infrastructure major Larsen & Toubro on July 22 reported a consolidated net profit of Rs 303 crore for the quarter ended June 2020, registering a 79 percent decline year-on-year (YoY).
"The consolidated PAT attributable to shareholders of the company, including profits from discontinued business, is Rs 303 crore, reflecting a decline of 79 percent vis-a-vis PAT of Rs 1,473 crore for the corresponding quarter of the previous year," L&T said.
The PAT was impacted mainly due to lower revenue, credit provisions in the financial services business and under-recovery of overheads.
The number, however, beat market estimates as a CNBC-TV18 poll of analysts had estimated the number to the tune of Rs 198 crore.
The company's consolidated gross revenue came at Rs 21,260 crore for Q1FY21, registering a YoY decline of 28 percent. A CNBC-TV18 poll had estimated revenue to come at Rs 21,377 crore.Revenue was impacted by nation-wide lockdown, resulting in halting of manufacturing and construction activities, non-availability of labour and disruptions to the supply chain ecosystem, the company said.
International revenues during the quarter came at Rs 9,497 crore which constituted 45 percent of the total revenue, with an increased composition of the non-cyclical IT&TS segment.
The company's EBITDA came at Rs 1,620.5 crore against the CNBC-TV18 poll of Rs 1,810 crore. The consolidated EBITDA margin came at 7.6 percent against the CNBC-TV18 poll of 9.1 percent.
The company said it earned a total profit after tax (PAT) of Rs 544 crore of which allocation to non-controlling interest is Rs 241 crore.
The company bagged orders worth Rs 23,574 crore at the group level during the quarter ended June 30, 2020, registering a decline of 39 percent, in a quarter characterised by low interest towards fresh investment and deferment of award decisions.
International orders during the quarter at Rs 8,872 crore constituted 38 percent of the total order inflow, L&T said.
The consolidated order book of the group stood at Rs 3,05,083 crore as of June 30, 2020, with an international order book constituting 24 percent of the total order book.
Infrastructure segment secured orders of Rs 11,349 crore, during the quarter ended June 30, 2020, lower by 32 percent compared to the corresponding quarter of the previous year.
Major orders received included a large barrage project, rural water supply schemes, an expressway project and some international orders in power transmission and distribution. International orders at Rs 1,653 crore constituted 15 percent of the total order inflow of the segment during the quarter, mainly from the Middle East region, L&T said.
The order book of this segment stood at Rs 2,21,115 crore as of June 30, 2020, with the international order book constituting 22 percent of the total order book.
Talking about the outlook, the company said that labour availability and productivity, working capital levels, balance sheet health and pick-up in execution pace are constantly monitored.
"The company's focus continues to be on responsible resumption, profitable execution of its large order book with higher operational efficiencies, liquidity management, tight expense control and successfully transitioning to a new work environment," it said.Against the backdrop of this intractable business environment, it has been pursuing a multi-pronged strategy to weather the economic crisis and restoring normalcy in business operations, while complying with all governmental directives and measures to ensure the safety of its customers, employees and contract staff, the company said.