Skip to main content

L&T Q2 profit jumps 118% to Rs 5,520 crore on E&A unit sale, order inflow declines 42%

International revenue during the quarter at Rs 12,148 crore constituted 39 percent of the total revenue.

Larsen & Toubro, the engineering and infrastructure major, reported consolidated profit at Rs 5,520.3 crore in Q2FY21, a jump of 118 percent compared to the year-ago period due to the divestment of electrical and automation business to Schneider Electric, France.

Profit before exceptional item stood at Rs 1,410.3 crore for the quarter, falling 44.7 percent compared to Rs 2,551.67 crore in same period last year, but better than CNBC-TV18 poll estimates which was pegged at Rs 1,230 crore.

"The impact of pandemic in terms of lower revenue, higher credit provisions in the financial services business and disruption of the Metro services led to significant fall in profit YoY, but sequentially the profit increased nearly four times reflecting pickup in the business momentum," L&T said.





Company recorded consolidated gross revenues of Rs 31,035 crore for the quarter ended September 2020, declining 12 percent YoY due to the lingering impact of the pandemic during the quarter under review, company said in its BSE filing.

"During the quarter, with the labour at various project sites reaching near pre-COVID levels, the businesses saw a pickup in execution momentum compared to Q1FY21 and achieved a sequential growth of 46 percent," it added.

International revenue during the quarter at Rs 12,148 crore constituted 39 percent of the total revenue.

L&T bagged orders worth Rs 28,039 crore at the Group level during the quarter, registering a sequential improvement of 19 percent over the previous quarter, but a decline of 42 percent from the previous year on account of deferment of award decisions largely caused by the pandemic.

International orders during the quarter constituted 36 percent of the total order inflow. "The consolidated order book of the Group stood at Rs 2,98,856 crore as of September 2020, with international order book constituting 24 percent of the total order book," L&T said.

Cash generation from operations was robust during the quarter which was strongly supplemented by proceeds from the divestment of electrical & automation business, company said.

Hence the company has declared a special dividend of Rs 18 per equity share to mark the successful completion of the divestment.

The revenue from infrastructure segment, which has an order book of Rs 2.2 lakh crore, fell 20.2 percent YoY to Rs 13,095.7 crore and its EBIT declined 32.6 percent and margin contracted 90 bps YoY in the quarter ended September 2020.

Power business registered a 40.1 percent year-on-year growth at Rs 688.7 crore in Q2FY21 and its EBIT grew by 20.3 percent but margin declined 30 bps YoY.

Heavy engineering business reported a 0.3 percent increase in revenue at Rs 708 crore, but its EBIT plunged 86.8 percent and margin at 2.6 percent in Q2FY21 contracted sharply from 20.1 percent YoY.

L&T's hydrocarbon business fell 5.9 percent year-on-year to Rs 4,049.7 crore and its EBIT dropped 40.7 percent compared to year-ago period.

The operating performance was also ahead of analysts' expectations. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 17.1 percent year-on-year to Rs 3,334.8 crore and margin contracted 63 bps YoY to 10.75 percent in Q2FY21.

EBITDA was estimated at Rs 3,050 crore and margin at 9.7 percent for the quarter, according to the CNBC-TV18 poll estimates.

Comments

Post a Comment

Popular posts from this blog

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
Post a Comment
Read more

Brokerages place bets on Titan, see double-digit upside in the stock

Titan can get benefits from the strong market share in the jewellery and wrist watches segment, mainly driven by a wide range of product portfolio catering mainly to the premium and value-added designer jewellery segment. After three consecutive sessions of losses, shares of Titan Company rose over a percent in morning trade on BSE on September 23. The company was dealt a severe blow by COVID-19 as the pandemic triggered strict lockdowns completely battered the retail sector. In the calendar year so far, shares of this one of the largest, most efficient and profitable specialty retailer in India are 7 percent down. The company reported a net standalone loss of Rs 270 crore for the quarter ended June 2020 as the COVID-19 pandemic hit business. The loss was higher than a CNBC-TV18 poll estimate of Rs 175 crore. Standalone revenue during the quarter declined 62.3 percent year-on-year to Rs 1,862 crore compared to the corresponding period last fiscal. Light at the end ...
Post a Comment
Read more

Indigo Paints trades at over 55% premium in grey market after IPO price announcement

The grey market premium has increased significantly from Rs 400-500 on January 11 to Rs 840-850 on January 15. Indigo Paints, one of the fastest-growing paint companies in India, was trading at more than 50 percent premium over its higher issue price band of Rs 1,490 per share in the grey market after the announcement of IPO details. The premium in the grey market as of January 15 was at around Rs 840-850 per share, which means the grey market trading price stood at Rs 2,340-2,330 against the issue price of Rs 1,490, as per the data available on IPO Watch. The premium increased significantly from Rs 400-500 on January 11 to Rs 840-850 today. The grey market is an unofficial trading platform where shares get traded well before the allotment in an initial public offering and till the shares get listed on bourses. It generally estimates the expected listing price of a stock. "Currently Asian paints and Berger paints are trading at a PE of 111 and 148, respectively, while Indigo Paint...
Post a Comment
Read more