L&T Q3 results update!
Last updated: 25 Jan, 2021 | 02:11 pm
Profit beats estimates: L&T has reported a 4.8% rise in net profit to Rs 2,466.7 crore in Oct-Dec 20 period, aided by robust order inflows amid a recovery in economic activity. The profit growth was largely attributed to higher profit from the IT segment and sale of commercial property in realty. Analysts had earlier estimated a net profit of about Rs 1,902 crore.
Revenue declines marginally: Consolidated revenue from operations declined 1.8% YoY to Rs 35,596.4 crore, missing estimates of about Rs 36,650 crore. 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%, the company said.
Highest order inflows: L&T received the highest-ever orders in a quarter. The quarter was marked by the receipt of many large contracts including the biggest EPC contract in the country ever - the High Speed Rail order. The orders for the quarter soared 76% YoY to Rs 73,233 crore. International orders during the quarter constituted 14% of the total order inflow.
Margins improve: Consolidated EBITDA increased 3.9% on-year to Rs 4,279.8 crore and margin expanded 60 bps YoY to 12% in the quarter.
Management commentary: The post lockdown pent-up demand, improved prospects in affordable residential real estate, green shoots in cement and steel capex outlays, are signs of improved confidence on economic revival. However, in the medium term, significant private sector-led capex could continue to remain in wait and watch mode, L&T said in a statement.
The company has seen a turnaround in its business aided by record-high orders amid a larger economic recovery in the country. Going forward, the company expects India's economy to rebound in FY22, supported by a much-awaited economy-friendly Union Budget and successful Covid vaccination drive. In the second half of the year, L&T expects high-frequency economic indicators to improve further and a good Capex push from the Central government leading to increased infrastructure development activity.