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L&T Q4 profit falls 6.5% to Rs 3,197 crore, order inflow up 5% at Rs 57,785 crore

The L&T share price has corrected 41 percent in the last one year period on fears of slowing orders and nationwide lockdown due to COVID-19 crisis.

June 05, 2020 / 07:31 PM IST
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Infrastructure major Larsen & Toubro on June 5 reported a consolidated profit of Rs 3,197 crore in the quarter ended March 2020, registering a 6.5 percent decline YoY despite lower tax cost (down 22 percent). Muted revenue growth, and higher finance, employee and admin cost hit bottomline.

Consolidated revenue from operations grew by 2.2 percent year-on-year to Rs 44,245.28 crore in Q4FY20, impacted by COVID-19-led lockdown in the last fortnight of March quarter, while execution pace was impacted due to client liquidity position, said L&T.

Company further said the order inflow for March quarter stood at Rs 57,785 crore, registering a growth of 5 percent over the corresponding period of the previous year, with significant orders received in infrastructure segment.

The consolidated order book of the group stood at Rs 3,03,857 crore as at March 2020, a growth of 4 percent over March 2019, it added. "International orders constituted 25 percent of the total order book."

On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3 percent to Rs 5,121 crore YoY and margin contracted by 62 basis points to 11.57 percent in quarter ended March 2020 YoY.

Hydrocarbon business performed strong on all earrings parameters during the March quarter, whereas other segment reported a decline in growth barring Power which reported good performance on the operating front only.

Revenue from hydrocarbon business, which contributed 11 percent to total revenue, grew by 15.1 percent year-on-year to Rs 4,979.2 crore and at operating level, its EBIT (earnings before interest and tax) jumped 30 percent to Rs 502.3 crore and margin expanded 120 basis points to 10.1 percent YoY.

Infrastructure segment (which contributed to 58 percent to total business) registered a 5.7 percent YoY decline in revenue at Rs 25,559.7 crore and 14.9 percent fall in EBIT at Rs 2,626.6 crore with 110 bps contraction in margin, primarily due to slowdown caused by COVID-19 environment.

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During the quarter, the segment recorded order inflow of Rs 41,396 crore, a growth of 33 percent over the corresponding quarter of the previous year, taking total orderbook to Rs 2,24,467 crore as of March 2020, L&T said.

Power business revenue fell 39.5 percent to Rs 565.3 crore in Q4FY20 YoY, while its EBIT jumped sharply to Rs 203.2 crore (against Rs 28.4 crore YoY) and margin expanded to 35.9 percent (versus 3 percent YoY) during the quarter.

Heavy engineering and defence business reported a 22 percent YoY decline in revenue at Rs 701.6 crore and 16.3 percent fall at Rs 928.1 crore respectively, while electrical & automation revenue dipped 27.8 percent to Rs 1,239.1 crore compared to same quarter last year.

L&T said consolidated profit for the full year at 9,549.03 crore registered growth of 7.2 percent YoY and gross revenue of Rs 1,45,452 crore for the year achieved a 8 percent growth compared to previous year. "International revenue during the year at Rs 48,467 crore constituted 33 percent of the total revenue."

"While the initial quarters of FY21 are expected to be adversely affected by the current upheaval, we expect growth revival in the later part of the financial year assuming things get better from here," said the company.

Meanwhile, today, heavy civil infrastructure business of L&T Construction has secured an order from the Irrigation and Command Area Development Department, Government of Telangana, which is undertaking the Sita Rama Lift Irrigation scheme to irrigate a command area of about 9.36 lakh acres in the districts of Khammam, Kothagudem and Mahabubabad.

L&T share price has corrected 41 percent in the last year on fears of slowing order inflow and the coronavirus-induced nationwide lockdown. It was down 28 percent year-to-date and 38 percent during the March quarter itself.

Moneycontrol News
first published: Jun 5, 2020 06:41 pm

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