L&T Q1 Results: Net profit jumps nearly four-fold to Rs 1,174 crore, revenue rises 38% YoY

Consolidated order wins for the quarter saw a rise of 13 percent YoY at Rs 26,560 crore.

Larsen & Toubro (L&T) on July 26 said its June quarter consolidated net profit jumped almost four times to Rs 1,174.44 crore.

In Q1 FY21, the company posted a profit at Rs 303 crore on COVID-induced lockdown.

The profit number, however, was below a CNBC-TV18 poll which had pegged the company's Q1FY22 profit at Rs 1,590 crore.

Revenue for the said quarter came in at Rs 29,334.73 crore, up 38 percent, as against Rs 21,259.97 crore posted in Q1 FY21. The CNBC-TV18 poll had expected revenue at Rs 31,219 crore.

"Project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions. The International revenues during the quarter at Rs 11,186 crore constituted 38 percent of the total revenue," L&T said in its BSE filing.

The company's Q1FY22 EBITDA jumped 95.8 percent to Rs 3,171.5 crore against Rs 1,620 crore in the same quarter last year. EBITDA margin came in at 10.8 percent against 7.62 percent YoY.

A CNBC-TV18 poll had pegged the company's Q1 EBITDA at Rs 3,741 crore and EBITDA margin at 11.1 percent.

Consolidated order wins for the quarter saw a rise of 13 percent YoY at Rs 26,560 crore. Order book stood at Rs 3.24 lakh crore as of June 30, 2021, with international orders at 20 percent of the total order book.

"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. International orders at Rs 9,045 crore during the quarter comprised 34 percent of the total order inflow," L&T said.

The company added that it remains focussed on the efficient execution of its large order book, working capital reduction and cost optimisation.

"The company's focus continues to be on the efficient execution of its large order book, working capital reduction, cost optimization through the use of digital technologies aimed at operational efficiencies and driving an agile balance sheet," L&T said.

"The company is optimistic of its growth aspirations in the medium term as the economic outlook improves and is committed to the creation of sustainable returns to stakeholders," it said.

The company highlighted that after the waning of the second wave of the pandemic and lockdown restrictions progressively being eased in the recent weeks, signs of a pick-up in economic activity are visible.

It, however, added that the recovery may remain uneven as the global economy continues to be vulnerable to future setbacks due to mutated variants and waves of the COVID-19 virus as evidenced by the reintroduction of lockdown restrictions by some countries while others are engaged in progressive unlocking.