Larsen & Toubro (L&T) posted a consolidated profit of ₹5,230.3 crore, a sharp jump of 118% year-on-year, for the quarter ending September 30. The L&T board has approved a special dividend of ₹18 per share of capital, that is, 900% of the nominal value of ₹2 each, for fiscal year 2020-21. The profit before the exceptional departure was ₹Rs 1,410.3 crore for the quarter, a drop of 44.7% compared to ₹2,551.67 crore in the same period last year.
The company posted consolidated gross income of ₹ Rs 31,035 crore for the September quarter, a 12% year-on-year decrease due to “due to the persistent impact of the pandemic during the quarter under review.” International revenues during the quarter in ₹12,148 million rupees, constituted 39% of total revenue.
The company completed the divestment of its electrical automation business to Schneider Electric (SE), France and transferred the business to Schneider upon receipt of consideration on August 31, 2020.
The engineering and infrastructure specialist said: “During the quarter, with workforce at various project sites reaching near pre-covid levels, companies saw a rebound in execution momentum compared to the first quarter of the fiscal year. 2020-21 and achieved sequential growth of 46%. “
“The company bagged orders by value ₹Rs 28,039 crore at the Group level during the quarter ended September 30, 2020, recording a 19% sequential improvement over the prior quarter, but a 42% decrease from the prior year, due to postponement of award decisions caused in large part by the pandemic, “Larsen & Toubro said in a statement.
International revenue during the quarter a ₹Rs 12,148 crore constituted 39% of total revenue. The Group’s consolidated order book stands at ₹Rs 298,856 crore as of September 30 with the international order book constituting 24% of the total order.
Cash generation from operations was strong during the quarter, which was strongly complemented by gains from the divestment of the power and automation business, the company said. Larsen & Toubro declared a special dividend of ₹18 per share of equity to mark the successful completion of the divestment, the company said.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 17.1% year-on-year to ₹Rs 3,334.8 crore and the margin contracted 63 bps y / y to 10.75% in the second quarter of fiscal 21.
On the outlook, the company said that “if the current moderation in new cases of COVID is maintained and with greater efforts to launch effective vaccines, the recovery could accelerate and produce a possible improvement in GDP over the next two years.”
“The Government’s strong emphasis on infrastructure spending bodes well for the Company and the National Infrastructure Pipeline, which establishes a detailed capital investment roadmap through 2025, provides visibility into the prospects for national infrastructure,” he added .
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