L&T gains after order win; Q2 results

Larsen & Toubro (L&T) rose 2.70% to Rs 1831 after the company said its construction arm has secured a large order for its buildings a factories business from Central Public Works Department (CPWD).

Oct 28, 2021 11:10 IST capital market

The order is for construction of Common Central Secretariat Integrated Buildings 1, 2 and 3 in Plot 137, New Delhi with a built-up area of approximately 48.11 lakh sq.ft.

The scope of work also involves demolition, civil works, finishes, external development, furniture, related MEP works and operation & maintenance for 5 years. The project is scheduled to be completed in 24 months.

According L&Ts classification, the value of large contracts lies between Rs 2500 crore to Rs 5,000 crore.

L&Ts consolidated net profit fell 67.04% to Rs 1819.45 crore on 12.05% increase in net sales to Rs 34772.90 crore in Q2 September 2021 over Q2 September 2020.

The increase in revenue is attributed to project execution momentum with easing of regional lockdowns on progressive vaccination coverage and industry leading growth in the IT&TS portfolio. International sales during the quarter at Rs 12,318 crore constituted 35% of the total revenue.

The bottomline is driven by higher profits in the IT & Technology Services (IT&TS) portfolio and improved margins from the projects & manufacturing portfolio as the pandemic induced stress in previous periods progressively wanes out.

The consolidated net profit includes Rs 144 crore gain on divestment of stake in hydel power plant in Uttarakhand (a part of the development projects segment) and tax expense of Rs 47 crore arising on transfer of the NxT Digital Business from the parent to Mindtree.

The company bagged orders worth Rs 42,140 crore during the quarter ended 30 September 2021, a growth of 50% over the corresponding period of the previous year. The International orders at Rs 22,116 crore during the quarter comprised 52% of the total order inflow.

The consolidated order book of the group was at Rs 330,541 crore as on 30 September 2021, at near record levels, with international orders having a share of 23%.

L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services.

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