L&T Q1 results: Net profit drops 69% to ₹536.88 crore due to COVID-191 min read . Updated: 22 Jul 2020, 06:09 PM IST
- The income for the quarter dropped 27% to ₹22,037.37 crore
- Revenue was impacted by nation-wide lockdown, resulting in halting of manufacturing and construction activities, the company said.
Engineering and infrastructure major Larsen and Toubro Ltd (L&T) today reported a 68.73% year-on-year fall in net profit at ₹536.88 crore for the quarter ended on June 30. The consolidate profit for the same quarter was at ₹1,697.62 crore last year.
The Bloomberg poll of two analysts had estimated a net loss of ₹467.8 crore for June quarter.
The income for the quarter dropped 27% to ₹22,037.37 crore. The consolidated gross revenue registered a 28% decline on year-on-year to 21,260 crore.
L&T management earlier said that the loss of migrant labour during the lockdown has been a challenge in completing projects. “Revenue was impacted by nation-wide lockdown, resulting in halting of manufacturing and construction activities. Non-availability of labour and disruptions to the supply chain ecosystem also impacted the revenues. International revenues during the quarter at ₹9,497 crore constituted 45% of the total revenue," the company said in a statement.
L&T bagged orders worth ₹23,574 crore at the group level during the June quarter registering decline of 39%, in a quarter characterised by low interest towards fresh investment and deferment of award decisions. International orders during the quarter at ₹8,872 crore constituted 38% of the total order inflow.
The consolidated order book of the company stood at ₹305,083 crore as at June 30, 2020, with international Order Book constituting 24% of the total order book.
“The company’s focus continues to be on responsible resumption, profitable execution of its large order book with higher operational efficiencies, liquidity management, tight expense control and successful transitioning to a new work environment," the company said.