L&T Q3 results: Net profit rises 5% to Rs 2,467 crore, beats estimates; order book soars 76%

NEW DELHI: EPC major Larsen and Toubro (L&T) on Monday said its consolidated net profit rose 4.87 per cent to Rs 2,466.71 crore compared to Rs 2,352.12 crore in the same quarter last year.

Analysts in the ETNow poll had projected a net profit at Rs 1,699 crore.

Revenue from operations decreased 1.78 per cent year-on-year to Rs 35,596.42 crore from Rs 36,242.68 reported in the year ago quarter.

The company said it received the highest-ever orders in a quarter, thanks to the receipt of many large contracts including the biggest EPC contract in the country ever - the High Speed Rail order.

With this, the orders for the quarter soared 76 per cent over the corresponding quarter of the previous year and stood at Rs 73,233 crore. International orders during the quarter constituted 14 per cent of the total order inflow.

The consolidated order book of the Group stood at a record Rs 3,31,061 crore as of December 31, 2020, registering growing 9 per cent over the March 2020 level.

Segment-wise, infrastructure segment secured orders of Rs 45,574 crore, during the quarter, higher by 80 per cent YoY, with receipt of two marquee orders of High Speed Rail.

Heavy engineering segment secured orders at Rs 998 crore during the quarter, almost a 100 per cent YoY growth led by orders contracted in the nuclear business. International orders constituted 61 per cent of the total order inflow. Other segments also saw decent to robust growth in orders.

Power segment, however, did not secure any major order during the quarter. L&T said it was due to absence of green field thermal power project opportunities.

“The post lockdown pent-up demand, improved prospects in affordable residential real estate, green shoots in cement and steel capex outlays, are signs of improved confidence on economic revival. However, in the merdium term, significant private sector-led capex could continue to remain in wait and watch mode,” L&T said in a statement.

It believes India's economy could rebound back in FY22, supported by a much awaited economy-friendly Union Budget, successful Covid vaccination drive helping to restore normalcy and kickstart business activity and increased investment in infrastructure.