Larsen and Toubro has registered a 4 per cent increase in consolidated net profit at ₹3,696 crore in the fourth quarter of FY21 compared to ₹3,562 crore in the corresponding previous quarter on cost control amid Covid-19 crisis.

Revenue was up 9 per cent at ₹48,088 crore for the quarter with execution activities normalising on easing of Covid restrictions, prior to the onset of the second pandemic wave.

Dividend of 18% a share

The board has recommended a final dividend of ₹18 per share, post the divestment of the Electrical and Automation business.

“Last year has been one of the toughest for the company. The year ahead has many unknowns including increasing commodity prices, migration of workforce and disruption in supply chain. The company will need to calibrate our growth accordingly. But the performance in 2021 reaffirms that we are well-positioned to meet the challenges,” said SN Subrahmanyan, CEO, L&T.

“The focus would be on large project wins, efficient execution of its large order book, productive utilisation of its monetary resources, all targeted to ensure a sustainable business model and thereby improved shareholder return,” the company said.

Promising order book

Despite the pandemic concern, the company registered an 8 per cent increase in order book at ₹3.27 lakh crore.

However, the order inflow for the quarter was down 12 per cent at ₹50,651 crore despite receiving the biggest solar PV plant order and transmission line orders. The international business revenue of ₹15,851 crore accounted for 33 per cent of overall revenues in the quarter under review. Infrastructure segment recorded 24 per cent fall in order inflow at ₹31,256 crore.

The segment order book stood at ₹2.45 lakh crore as at March 31, 2021, a growth of 13 per cent with receipt of large value orders. The segment recorded customer revenues of ₹26,240 crore, a growth of 5 per cent in the March quarter.

The power segment recorded order inflow of ₹792 crore in the March quarter. The order book in the segment declined 19 per cent at ₹12,844 crore and revenue was at ₹1,216 crore.

Heavy engineering recorded 57 per cent rise in revenues at ₹999 crore. Financial services segment recorded income from operations at ₹3,377 crore which was flat compared to last year.

The loan book decreased to ₹94,013 crore (₹98,384 crore), reflecting focus on collections, sell down and run down of defocussed business portfolio.

Developmental projects revenues at ₹ 1,114 crore was up 13 per cent.

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