Larsen & Toubro's March quarter profit rises 8% to  3,418 crore

  • The group's consolidated order book was 2,93,427 crore as on 31 March, 2019, with international order book constituting 22% of the total
  • Consolidated income in the said quarter increased to 45,555.29 crore from 41,091.04 crore in January-March 2018

Strong revenue growth and operational efficiencies led infrastructure major Larsen and Toubro Ltd (L&T) to report an 8% rise in net profit for the March quarter to 3,418 crore, against 3,167 crore in the year-ago period. Revenue from operations for the quarter grew 10% from 40,676 crore to 44,933 crore.

For the full fiscal year, net profit stood at 8,905 crore, against 7,369 crore in FY18. Revenue in FY19 was 1.41 trillion, 18% higher compared with 1.19 trillion in FY18. International revenue was 45,109 crore for the year, constituting 32% of total revenue.

Order intake for the quarter was 56,538 crore, growing 14% year-on-year and led by order wins in power, heavy engineering and hydrocarbons. Consolidated order book for the group stands at 2.93 trillion as of March-end, with the international order book accounting for 22% of it.

For FY20, the management gave a guidance of 12-15% growth in revenues and 10-12% growth in order book.

The infrastructure segment saw order inflows fall 8% to 31,033 crore for the quarter, while Ebitda margins were lower at 8.5% because of cost pressures and pending claims.

The heavy engineering segment saw orders rise 78% year-on-year in fiscal year 2019, because of increased demand for clean fuel supply to meet BS-VI and marine pollution norms.

Ebitda margins here rose from 21% in the previous year to 24.5%. The hydrocarbon segment secured orders of 27,871 crore for the year, increasing 76% compared with FY18.

The financial services segment recorded customer revenue of 12,638 crore for the year, registering growth of 26%, while revenues at the IT and technology subsidiaries grew 28% year-on-year to 14,371 crore for the year.

In a statement the company said: “With the general elections in the first quarter, the disruptions in decision-making processes could impact key operating parameters in the first half of 2019-20. Nevertheless, with the momentum set on infrastructure building, the emphasis on investments in airports, railroads, water supply, power availability and mass rapid transit systems, is expected to continue."

This story has been published from a wire agency feed without modifications to the text.