Larsen -; Toubro Q3 net down -16.7% yoy at Rs2,055cr due to sharp spike in cost of construction and exceptional gains last year

28 Jan 2022 , 07:58 PM

Larsen & Toubro Ltd reported 11.14% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs39,563cr. On a sequential basis, the revenues were up by 13.78%.

During the December 2021 quarter, L&T saw solid revenue growth traction across infrastructure segment, hydrocarbons and IT. However, heavy engineering and the defence engineering businesses came under pressure.

The order book of L&T stood at a record level of Rs340,365cr. It bagged orders worth Rs.50,359cr during the Dec21 quarter.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 6.15% at Rs3,798cr. During the quarter, there was solid traction in EBIT growth in infrastructure and IT and Technology.

However, EBIT growth came under pressure in hydrocarbons, heavy engineering and defence engineering. A sharp spike in construction costs and construction material costs in the quarter on yoy basis also had its impact.

Operating margins fell marginally from 10.05% in Dec-20 quarter to 9.60% in the Dec-21 quarter. Operating margins were higher on a sequential basis by 21 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was down -16.7% yoy at Rs2,055cr on the back of the weak operating performance getting transmitted to the bottom line. In addition, the company also had exceptional gains of Rs209cr in the Dec-20 quarter which also contributed to the profit fall.

Also other income halved at Rs.571cr on yoy basis. PAT margins fell from 6.93% in the Dec-20 quarter to 5.19% in the Dec-21 quarter. The PAT margins were just marginally lower by 4 bps on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Larsen & Toubro
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 39,563	₹ 35,596	11.14%	₹ 34,773	13.78%
EBITDA (Rs cr)	₹ 3,798	₹ 3,578	6.15%	₹ 3,266	16.28%
Net Profit (Rs cr)	₹ 2,055	₹ 2,467	-16.70%	₹ 1,819	12.93%
Diluted EPS (Rs)	₹ 14.61	₹ 17.55		₹ 12.94
EBITDA Margin	9.60%	10.05%		9.39%
Net Margins	5.19%	6.93%		5.23%