Larsen and Toubro (L&T) on Monday said its consolidated net profit rose 4.87% to Rs 2,466.71 crore compared to Rs 2,352.12 crore in the same quarter last year.
Revenue from operations decreased 1.78% YoY to Rs 35,596.42 crore from Rs 36,242.68 reported in the year-ago quarter.
The increase in profit is largely attributed to higher profit from IT & ITES segment and sale of commercial property in Realty, the company said in a statement. PAT also includes a gain on divestment of Rs 209 crore from discontinued operations for the.
“The gain of divestment is accrued against the sale of the Electrical & Automation business to Schneider Electric SE and sale of the UK based Marine control & automation systems subsidiary to Rolls-Royce Power Systems AG,” said the company.
International orders during the quarter constituted 14% of the total order inflow. On a cumulative basis, the order inflow for the nine months period ended December 31, 2020, stood at Rs 124,846 crore.
“The Gross Revenues of Rs 35,596 crore for the quarter ended December 31, 2020, registered a sequential growth of 15 per cent. The Covid-19 restrictions continued to have an impact on project site execution and Hyderabad metro operations that led to a marginal decline in revenue of 2% over the corresponding quarter of the previous year,” the company said.
Although the company’s management has a positive outlook, it refrained from giving any guidance for the fiscal year 2021. L&T said that the investors should note that L&T’s 5-year strategic plan Lakshya ends in FY21. So, any development related to future capital allocation should be watched out for.