L&T consolidated Q2 net up 13.3% at Rs2,527 crore
24 October 2019
Engineering and construction giant Larsen & Toubro has reported a 13.3 per cent year-on-year increase in consolidated net profit at Rs2,527 crore for the fiscal second quarter ended 30 September 2019-20, against Rs2,230.49 crore in the similar quarter of the previous fiscal.
L&T’s consolidated profit after tax (PAT) from continuing operations for the quarter ended 30 September 2019 increased by 10.3 per cent year-on-year to Rs2,309 crore.
Consolidated gross revenue from continuing operations for the quarter stood at Rs35,328 crore against Rs30,678.13 crore in Q2FY19., achieving y-o-y growth of 15 per cent. Overseas revenue during the quarter stood at Rs12,118 crore, which constituted 34 per cent of the total revenue.
For the period April-September 2019, the consolidated gross revenue stood at Rs64,964 crore, an increase of 13 per cent y-o-y.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter at Rs 4,021.4 crore, while EBITDA margin came at 11.4 per cent.
L&T's order book swelled to about Rs3,03,000 crore on the back of a 20 per cent surge in new contracts, worth Rs48,000 crore. Of this, the global order inflow was about Rs16,675 crore, or 35 per cent of the total.
The Company won new orders worth Rs48,292 crore at the group level during the quarter ended 30 September 2019 recording a year-on-year growth of 20 per cent. Overseas orders during the quarter stood at Rs16,675 crore, constituting 35 per cent of the total order inflow.
L&T said large value order wins in hydrocarbon, buildings and factories and power business were the major contributors to the order inflow during the quarter.
On a cumulative basis, the order inflow for the half year ended 30 September 2019 stood at Rs86,992 crore, growing at 16 per cent over the corresponding period of the previous year.
With the surge in order intake, the company crossed the Rs3,00,000 crore order book milestone with the consolidated order book at Rs303,222 crore as of 30 September 2019, with international orders constituting 22 per cent of the total order book.
L&T said it is on track to meet order inflow guidance of 10-12 percent and revenue guidance of 12-15 percent for FY20.
"Large value order wins in hydrocarbon, buildings, factories and power business were the major contributors to the order inflow during the quarter," L&T said.
While the company acknowledged weak macro-environment, it said a robust order book, strong balance sheet, diversified business portfolio and proven execution capabilities are acting as an economic moat for the company in the current volatile and challenging economic environment.
Infrastructure Segment secured orders of Rs15,669 crore, during the quarter ended 30 September 2019, which was lower by 33 per cent compared to the previous year.
Power Segment secured orders of Rs4,315 crore for the quarter ended 30 September 2019 recording a significant growth on receipt of multiple FGD orders and an order for a comprehensive boiler island package in L&T–MHPS Boiler joint venture, consolidated at L&T share of the order.
Consequently, the order book of the segment grew to Rs16,481 crore as of 30 September 2019, with the international order book constituting 7 per cent of the total.
The heavy engineering segment secured orders valued at Rs680 crore during the quarter ended 30 September 2019 registering a decline of 48 per cent y-o-y, mainly due to deferment of orders in refinery, oil and gas sector, fertiliser and petrochemical projects. International orders constituted 80 per cent of the total order inflow of the segment during the quarter.
The order book of the Segment stood at Rs4,085 crore as of 30 September 2019, with 56 per cent being international.
Defence engineering segment received orders of Rs573 crore during the quarter, representing a decline of 52 percent over the corresponding quarter of the previous fiscal. International orders constituted 17 per cent of the total order inflow of the segment.
The order book of the Segment stood at Rs10,603 crore as of 30 September 2019, with the international order book constituting 16 per cent of the total.
Hydrocarbon segment secured a significantly high quantum of orders, valued Rs14,851 crore, during the quarter ended 30 September 2019, recording asubstantial growth, with receipt of a mega order in onshore vertical in the domestic market as well as receipt of a large overseas order in offshore vertical. Overseas orders worth Rs7,245 crore constituted 49 per cent of the total order inflow of the segment during the quarter.
The order book of the Segment stood at Rs50,531 crore as of 30 September 2019, with international orders comprising 48 per cent of the total.
In the IT and technology services (IT&TS) segment, the group acquired control of Mindtree Limited on 2 July 2019. The stake as of 30 September 2019 is 60.55 per cent. Subsequent to acquisition, the financials have been consolidated from the current quarter and is reported under IT & TS segment. The resultant figures for the current periods are not comparable with the previous periods to that extent, L&T stated.