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

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.”