L-;T logs 17% yoy drop in Q3 PAT at Rs2,055cr, revenue rises 11% yoy as project execution momentum improves and IT-;TS portfolio growth robust

31 Jan 2022 , 08:50 AM

Larsen & Toubro (L&T) posted a 17% decline in consolidated net profit to Rs2,055cr for the quarter ending December 2021 (Q3FY22) over the corresponding quarter of the previous year, which had an instance of a sale of commercial property in Realty business and gain on divestment from discontinued operations of the Electrical & Automation business.

Meanwhile, the company’s Consolidated Revenues of Rs39,563cr in the quarter under review, registered a y-o-y growth of 11%. The increase reflects an improving project execution momentum and robust growth in the IT&TS portfolio. International sales during the quarter at Rs14,541cr constituted 37% of the total revenue.

The Company has secured orders worth Rs50,359cr during the quarter ended December 31, 2021, registering a decline of 31% over the corresponding period of the previous year, since the previous year had the benefit of the Company securing the biggest ever EPC contract for Mumbai Ahmedabad High-Speed Rail in the Infrastructure segment. During the quarter, orders were received in various businesses viz Hydrocarbon Offshore, Metros, Rural Water Supply, Minerals and Metal, Public Space, Health Infrastructure and Power Transmission and Distribution.

Notably,  the  International orders at Rs20,521cr during the quarter comprised 41% of the total order inflow, with receipt of large value international orders in Hydrocarbon Offshore.

For the nine-month ended December 31, 2021, period, L&T posted a Consolidated Net Profit After Tax of Rs5,049cr declining by 39% y-o-y since the corresponding period of the previous year included the one-time gain on divestment of the Electrical & Automation business. Meanwhile, consolidated Revenues was at Rs103,671cr  recorded a y-o-y growth of 18% with international revenues during the nine-month period at Rs38,045cr constituting 37% of the total.

The consolidated order book of the group was at Rs340,365cr as of December 31, 2021, at record levels, with international orders having a share of 24%. 

On Monday, L&T stock will be in focus amid Q3 earnings.