L&T Q1 profit rises 20.5% YoY to Rs 1,361 crore

A logo of Larsen and Toubro (L&T) is pictured outside its Corporate office in Mumbai | Photo: Reuters
Larsen & Toubro (L&T) on Tuesday reported a 20.5 per cent year-on-year (YoY) increase in consolidated PAT (profit after tax) at Rs 1,361 crore for the first quarter (April-June) of the financial year 2019-20 (FY20). The company had posted net profit of Rs 1,129 crore in the year-ago period. 

Consolidated gross revenue during the quarter under review came in at Rs 29,636 crore from continuing operations for the quarter ended June 30, 2019, achieving YoY growth of 10 per cent. The International revenue during the quarter at 9,268 crore constituted 31 per cent of the total revenue, L&T said in its earnings release.

Revenue from operations stood at Rs 29,635.95 crore, up 9.7 per cent YoY.  Basic earnings per share (EPS) came in at Rs 10.50 against Rs 8.67 in the year-ago period. 

The company won new orders worth 38,700 crore at the group level during the period, registering a growth of 11 per cent. International orders during the year at 9,005 crore constituted 23 per cent of the total order inflow, it said. 

Order wins in Infrastructure and Power segments were the major contributors to the order inflow during the quarter.

"Developments such as US sanctions on Iran, volatile oil prices and a re-direction of fiscal focus due to climate change are expected to influence the market sentiment. Amidst this backdrop, the Company however will continue to focus on select opportunities arising from renewable energies, hydrocarbon expansion and significant investments in infrastructure in near-shore geographies beyond Middle East," L&T said in its release to the exchanges.   

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Infrastructure segment secured fresh orders of Rs 17,497 crore, lower by 10 per cent compared to the previous year. Order wins were mainly from the airport sector, gold beneficiation award in Saudi, water supply 8 distribution order in Sri Lanka, a notable desalination plant order in Gujarat and an order for a Defence telecom network.

International orders at Rs 4,954 crore constituted 28 per cent of the total order inflow of the segment during the year. The order book of the segment stood at Rs 218,825 crore as at June 30, 2019. 

Hydrocarbon Segment secured orders worth Rs 3,424 crore during the quarter, a decline of 28 per cent compared to the corresponding quarter of the previous year, with no major international order. The order book of this segment stood at Rs 40,408 crore with international orders comprising 47 per cent. 

"As on June 30, 2019, the Company held 28.86 per cent of paid-up equity share capital of Mindtree Limited. In absence of participation in management, the investment in equity shares has been classified as investment measured at fair value for the quarter ended June 30, 2019. Subsequent to acquisition of control, the financials will be consolidated as a subsidiary from second quarter of the financial year," the company said in its release.