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L&T profit rises 21% to Rs 11,583 crore in FY21; board proposes Rs 18 final dividend

L&T profit rises 21% to Rs 11,583 crore in FY21; board proposes Rs 18 final dividend

The consolidated PAT includes a charge of Rs 3,620 crore towards exceptional items and Rs 8,238 crore profit from discontinued operations, mainly comprising of gain on divestment

Infrastructure major Larsen & Toubro reported a 21.29 per cent jump in profit for the financial year ended March 31, 2021. The company reported a consolidated profit after tax (PAT) of Rs 11,582.93 crore for the fiscal under review, as opposed to Rs 9,549.03 crore in the previous fiscal.

The consolidated PAT includes a charge of Rs 3,620 crore towards exceptional items and Rs 8,238 crore profit from discontinued operations, mainly comprising of gain on divestment, L&T said in a regulatory filing.

For FY21, the consolidated revenues stood at Rs 1.36 lakh crore from continuing operations, registering a decline of 7 per cent against Rs 1.45 lakh crore in FY20. International revenues during the fiscal stood at Rs 50,463 crore constituted 37 per cent of the total revenue.

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L&T attributed the decline in revenue to lockdown related disruptions in the first two quarters of the fiscal and new norms of social distancing, quarantine procedure and safety protocols, coupled with supply chain disruptions impacting project execution progress. The adverse conditions declined in severity throughout the year, though, the company added.

The infrastructure major reported orders worth Rs 1.75 lakh crore at the group level during the year ended March 31, 2021, registering a decline of 6 per cent compared to the previous year. This decline was on the back of COVID-induced disruptions to the business environment in the first half of the year. The company received International orders worth Rs 47,951 crore during the year, amounting to only 27 per cent of the total order inflow, with subdued overseas opportunities, especially in the Middle East.

"The consolidated order book of the group stood at Rs 3.27 lakh crore as of March 31, 2021, registering a robust growth of 8 per cent over March 31, 2020. International orders constitute 21 per cent of the total order book," L&T said in its filing.

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For the quarter ended March 31, 2021, L&T reported consolidated PAT of Rs 3,293 crore, 3 per cent up year-on-year against Rs 3,197 crore. Consolidated revenues for the quarter under review was Rs 48,088 crore, registering sequential growth of 35 per cent, with execution activities normalising on easing of COVID-19 restrictions, prior to onset of the second wave of the pandemic. The revenue growth on annual basis was 9 per cent, evidencing return to pre-COVID levels of activity, L&T said. International revenues during the quarter were Rs 15,851 crore, constituting 33 per cent of the total revenue.

On outlook for the financial year 2021-22, L&T projected second COVID-19 wave to temporarily impact growth momentum during the first quarter of current fiscal, but economy would recover once the current surge is past its peak and states begin lifting restrictions.

"In the backdrop of the COVID-19 pandemic and the resultant challenging economic environment, the Company while upholding the primary dictum of maintaining the health and safety of its personnel will continue to aggressively pursue opportunities for growth, both in domestic and international markets. The focus would be on large project wins, efficient execution of its large order book, productive utilisation of its monetary resources, all targeted to ensure a sustainable business model and thereby improved shareholder return," the company said.

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L&T board of directors recommended a final dividend of Rs 181 per share of the face value of Rs 2 each. The Company will arrange to pay the same after approval of the shareholders in its next Annual General Meeting. During the year, the company had declared a special dividend of Rs.18 per equity share as an interim dividend, post the divestment of its electrical and automation business.