L&T Q3 profit rises 15% to Rs 2,352 crore despite headwinds, revenue up 6%

Engineering and construction major Larsen and Toubro (L&T) has reported a 15.2 per cent year-on-year (YoY) rise in consolidated net profit from continuing operations at Rs 2,352 crore for the third quarter of FY20, despite headwinds in the domestic economy. The Mumbai-based company had posted a consolidated net profit of Rs 2041.62 crore in the same quarter last year and Rs 2,527.26 crore in September quarter of this fiscal.

Consolidated gross revenue rose 6 per cent to Rs 36,243 crore during the third quarter ended December 31, 2019, as against Rs 34,234 crore in the year-ago period. The International revenue, which constituted 36 per cent of the total revenue, stood at 12,871 crore during the quarter under review.

"The company is able to tide over the challenging environment with its strong Balance Sheet, diversified portfolio and robust order book which act as a bulwark against short term economic cyclicality," L&T said in a filing to the Bombay Stock Exchange.

For the nine-month ended December 31, 2019, L&T's overall profit after tax (PAT) including the PAT from discontinued operations was at Rs 6,352 crore, while gross revenue stood at Rs 101,207 crore.

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"The company successfully won new orders worth Rs 41,579 crore at the group level during the quarter ended December 31, 2019, amid subdued business environment," L&T said.

International orders during December quarter stood at Rs 17,901 crore, which increased to 43 per cent of the total order inflow.

As at December 31, 2019, the consolidated order book of the L&T group stood at Rs 306,280 crore, registering a growth of 5 per cent over March, 2019. International orders constitute 24 per cent of the total order book.

Segment-wise, IT & Technology services segment achieved customer revenue of Rs 6,090 crore, including Rs 1,965 crore on account of the Mindtree acquisition. Infrastructure segment secured fresh orders of Rs 28,115 crore, higher by 28 per cent compared to the previous year.  While power segment secured orders of Rs 816 crore, heavy engineering segment bagged orders worth Rs 497 crore.

Ahead of Q3 results, shares of L&T closed Wednesday's trade at Rs 1,294.25 apiece, down 0.64 per cent, on the BSE.

By Chitranjan Kumar