Companies

L&T net doubles to ₹1,531 cr in Q1

Our Bureau Mumbai | Updated on July 26, 2021

Better order execution boosts performance

Larsen & Toubro’s consolidated net profit more than doubled to ₹1,531 crore in the June quarter, against ₹544 crore in the same quarter of the previous fiscal, on the back of better order execution.

Revenue from operations was up 38 per cent at ₹29,335 crore (₹21,260 crore) as execution of projects improved despite the second wave of Covid affecting operations at many locations.

However, project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions. Revenue from international operations accounted for 38 per cent at ₹11,186 crore.

The company bagged orders worth ₹26,557 crore at the Group level during the quarter under review, registering a growth of 13 per cent over the same period last year.

It received orders across segments including metros, rural water supply, minerals and metal, residential, power transmission and distribution, power and hydrocarbon offshore sectors. International orders at ₹9,045 crore, accounted for 34 per cent of the total order inflow.

The consolidated order book of the group was at ₹323,721 crore on June 30, with international orders at 20 per cent of the total order book.

Infra segment

Infrastructure segment secured orders worth ₹11,023 crore during the quarter ended June 30, registering a marginal decline over the corresponding quarter of the previous year, mainly due to pandemic-induced delay in tendering activities.

The segment order book was at ₹244,621 crore with the share of international orders at 20 per cent. The segment recorded customer revenues of ₹10,409 crore, a growth of 63 per cent with better execution momentum.

With the waning of the second wave of the pandemic and lockdown restrictions progressively being eased in the recent weeks, signs of pick-up in economic activity is visible.

The recovery, however, may remain uneven as the global economy continues to be vulnerable to future setbacks due to mutated variants and waves of the Covid virus as evidenced by reintroduction of lockdown restrictions by some countries while others are engaged in progressive unlocking, it said.

Published on July 26, 2021

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