MUMBAI : Engineering and construction conglomerate Larsen and Toubro (L&T) reported a net profit growth of 13.3% to 2,527 crore on a year-on-year basis for September 2019 quarter as large value order wins in Hydrocarbon, Buildings & Factories and Power business were the major contributors during the quarter.

Consolidated gross revenue grew 15% on a year on year basis to 35,328.45 crore from continuing operations for the quarter ended September 30, 2019.

Hydrocarbon Segment secured a significantly high quantum of orders valued 14,851 crore during the quarter ended September 30, 2019, registering a substantial growth, with receipt of a mega order in Onshore vertical in the domestic market as well as receipt of a large order in Offshore vertical in an international geography.

Developmental Projects Segment registered Customer Revenue of 1,452 crore during the quarter ended September 30, 2019, recording 12% growth over the corresponding quarter of the previous year on account of higher fare revenue with partial commissioning of metro rail in Hyderabad in March'19.

Power Segment secured orders of 4,315 crore for the quarter ended September 30, 2019 registering significant growth on receipt of multiple FGD orders and an order for a comprehensive boiler island package in LeLT-MHPS Boiler JV, consolidated at Lai- share of the order.

A Bloomberg poll of 14 analysts had estimated consolidated net profit of 2146.8 crore for the quarter while a poll of 16 analysts had estimated consolidated revenue at 35,434.2 crore.

L&T won new orders of 48,292 crore during the quarter, registering a growth of 20% year-on-year. L&T crossed the 3 trillion Order Book milestone with the consolidated Order Book at 303,222 crore as at September 30, 2019 and with international orders constituting 22% of the total order book.

The company said in a press release on Wednesday that 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.

"Despite liquidity tightness and economic slowdown faced by the economy, L&T is well on track to achieve the lower end of the revenue growth guidance of 12-15% for FY20, supported by strong growth in the services business," Antique Stock Broking had said in a note on 13 September.

Completion of capex phase, efficient utilization of capital, and divestment of noncore assets to help generate free cash flow Under its strategic programme named Lakshya, L&T is targeting to improve RoE to 18% by FY21, led by better utilization of assets, cost rationalization measures, and monetization of non-core assets.

The company has entered a de-leveraging mode and the annual capex is expected to be around 1,000-1,200 crore, which will primarily be maintenance capex, Antique added.

The company said in the press release that it continues to focus on selective order acquisition, efficient execution of its large order book, conservation of monetary resources, productivity enhancement through leverage of new age digital technologies and improving the return on equity.

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