L&T Q1 results: Revenue increases marginally on new orders, retains FY20 growth forecast
Larsen & Toubro received new orders worth Rs 38,700 crore mainly from infrastructure and power segments, an improvement of 11 per cent compared to the previous year
Engineering major Larsen & Toubro's consolidated gross revenues improved by 10 per cent to Rs 29,636 crore for the first quarter of 2019-20 and profit after tax (PAT) registered a growth of 20 per cent to Rs 1,361 crore from Rs 1129 crore recorded in the same quarter last year.
The company received new orders worth Rs 38,700 crore mainly from infrastructure and power segments, an improvement of 11 per cent compared to the previous year. L&T's total order book now stands at Rs 2,94,014 crore as of June 30. While orders from the central and state governments were affected during general elections, higher number of orders from public sector undertakings and private players enabled the growth in the June quarter, said L&T.
Infrastructure segment got fresh orders worth Rs 17,497 crore in Q1, a fall of 10 per cent compared to the same quarter of previous year. These include orders for airports, gold beneficiation in Saudi Arabia, water-related orders in Sri Lanka and desalination plant in Gujarat etc. Of orders worth nearly Rs 3 lakh crore, Rs 2.18 lakh crore went into infrastructure work. Customer revenue from this segment stood at Rs 13,865 crore for the quarter, with a growth of 14 per cent.
In the power segment, L&T got an order for 2x660 MW ultra- supercritical thermal power plant in Buxar, Bihar. However, revenue from the segment stood at just Rs 580-plus crore, a decrease of over 48 per cent. Heavy engineering segment orders also decreased by 87 per cent to Rs 88 crore during the quarter, due to deferment of orders in oil and gas sector. Hydrocarbon segment, which did not get any international orders, also witnessed a decline of 28 per cent to Rs 3,424 crore for the quarter.
L&T said with a stable government in power and a thrust in budget for infrastructure improvement, the company was hopeful of improving its performance.