L&T net dips 62% to ₹2,232 cr in Q2

Our Bureau Mumbai | Updated on October 27, 2021

Larsen & Toubroposted 62 per cent dip in September quarter net profit to ₹2,232 crore against ₹5,824 crore in the same period last year, largely due to higher base.

The company registered a one-time net income of ₹8,146 crore from discontinued operations last year.

The net profit before exceptional items and discontinued operations was up 51 per cent at ₹2,135 crore (₹1,410 crore) as project execution gained momentum with the easing of regional lockdowns on progressive vaccination coverage and industry leading growth in the IT&TS portfolio.

Revenue from operations was up 12 per cent at ₹34,773 crore (₹31,073 crore) while operational expenses increased 10 per cent to ₹32,286 crore (₹29,445 crore) due to higher sub-contracting charges and increase in construction material cost.

The company gained ₹144 crore from divestment of stake in hydel power plant in Uttarakhand and incurred tax expense of ₹47 crore on transfer of the NxT Digital Business from the parent to Mindtree Ltd.

Steady orders

The company bagged orders worth ₹42,140 crore, up 50 per cent over last year. The international orders at ₹22,116 crore accounted for 52 per cent of the total order inflow.

The consolidated order book of the Group was at a record ₹330,541 crore, with international orders accounting for 23 per cent.

Orders bagged by the infrastructure segment was down 17 per cent at ₹12,108 crore over same period last year. The segment’s order book stood at ₹242,673 crore. Revenue from the segment was up seven per cent at ₹13,923 crore on better execution of projects, post easing of lockdown.

The power segment revenue increased 62 per cent to ₹1,114 crore even as EBITDA margin dipped to 2.7 per cent (3.1 per cent), primarily due to an unfavourable job mix.

The hydrocarbon segment secured ₹14,503-crore order in the quarter and registered 20 per cent growth in revenue at ₹4,867 crore with peaking of execution activities in the onshore vertical.

Published on October 27, 2021

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