Larsen & Toubro (L&T), India’s largest infrastructure company, saw a decline of 5 per cent in its consolidated net profit for the quarter ended December 2021 to ₹2,517.14 crore.

The company had reported a net profit of ₹2,648.33 crore in the same quarter last year but it included the sale of commercial property in the realty business and gain on divestment from discontinued operations of the electrical and automation business. The profit dip is also on the back of large base effect in the corresponding quarter of last year which had one-off sales proceeds from electrical & automation business.

Total consolidated income stood at ₹40,134.31 crore for the reporting quarter, a growth of 9.47 per cent compared to ₹36,661.08 crore in the same quarter last year.

Shankar Raman, CFO, Larsen & Toubro, said, “During the quarter we had to deal with worrisome inflation, adjust to the new supply chain protocols and the logistics constraints that the pandemic threw up. But there were opportunities as well in the form of rising demand post festive season. Fairly active working by the industry and robust tax collections by the government was seen during the quarter”. 

The company bagged orders worth ₹50,359 crore during the quarter, a decline of 31 per cent over the corresponding period of the previous year, since the previous year had the benefit of the company securing the biggest ever EPC contract from the Mumbai Ahmedabad High Speed Rail in the infrastructure segment.

The international orders at ₹20,521 crore during the quarter accounted for 41 per cent of the total order inflow, with receipt of large value international orders in hydrocarbon offshore.

The consolidated order book of the group was at ₹340,365 crore as on December 31, 2021, with international orders having a share of 24 per cent.

Infrastructure segment, which is the biggest revenue contributor, secured orders of ₹25,330 crore, during the quarter ended December 31, 2021, registering a decline of 44 per cent over the corresponding quarter of the previous year, which included the mega value order for high speed rail.

The segment order book stood at ₹248,900 crore as on December 31, 2021, with the share of international orders at 19 per cent.

IT and Technology Services segment, which is the second biggest revenue generator for the company, recorded customer revenues of ₹8,397 crore during the quarter ended December 31, 2021, recording 29 per cent growth compared to the same quarter last year, reflecting a surge in demand for more technology focused offerings.

comment COMMENT NOW