L&T Group's Stellar Performance For The Quarter Ended December 31, 2020

Highest ever orders booked in a quarter, 76% increase y-o-y, on receipt of contracts, Order Book at a record high, ₹ 331,061 crore, Revenue for the quarter evidencing return to pre-Covid level

Posted : 25 January, 2021
Author : Admin
L&T Group's Stellar Performance For The Quarter Ended December 31, 2020

During the quarter the Company was awarded the biggest EPC contract in the country and first of its kind - the prestigious High Speed Rail order. With this, the Group order inflow for the quarter ended December 31, 2020 registered a strong growth of  76%  over  the  corresponding  quarter  of  the  previous  year  and  stood at ₹ 73,233 crore. 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 ₹ 124,846 crore.

The consolidated order book of the Group stood at a record ₹ 331,061 crore as at December 31, 2020, registering a robust growth of 9% over the March’20 level.  The international orders constitute 20% of the total order book.

The Gross Revenues of ₹ 35,596 crore for the quarter ended December 31, 2020, registered a sequential growth of 15%. 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. International revenue during the quarter at ₹ 12,967 crore constituted 36% of the total revenue.  The consolidated gross revenue for the nine months period      is at ₹ 87,891 crore.

Consolidated Profit After Tax (PAT) for the  quarter ended  December 31, 2020     at ₹ 2,467 crore registered growth of 4.9% over the corresponding quarter of the previous year, largely attributed to higher profit from IT & TS segment and sale of commercial property in Realty (“Others” segment). PAT also includes gain on divestment of ` 209 crore from discontinued operations for the quarter ended December 31, 2020. The gain of divestment is towards (a) Further adjustments accrued against the sale of the Electrical & Automation business to Schneider Electric SE and (b) sale of the UK based Marine control & automation systems subsidiary to Rolls-Royce Power Systems AG.

PAT for the nine-month ended December 31, 2020 is at ₹ 8,290 crore.

Infrastructure Segment

Infrastructure Segment secured orders of ₹ 45,574 crore, during the quarter ended December 31, 2020, higher by 80% on y-o-y basis, with receipt of two marquee orders of High Speed Rail.

Further, notable orders received included an order for a special bridge project (Assam), domestic orders for rural water supply schemes (Madhya Pradesh), international orders in Power Transmission & Distribution and Metallurgical and Material Handling business. International orders constituted 7% of the total order inflow of the segment during the quarter.

The segment order book stood at ₹ 245,316 crore as at December 31, 2020, with the share of international order book at 19%.

The segment recorded customer revenue of ₹ 15,828 crore for the quarter ended December 31, 2020, registering a sequential growth of 22%. However, compared to the corresponding quarter of the previous year, the revenue declined by 7% primarily on account of progress being impacted due to Covid-19 preventive measures. The share of international revenue was 23% of the total customer revenue of the segment during the quarter.

The EBITDA margin of the segment for the quarter ended December 31, 2020 is at 6.2% for the current quarter as compared to 6.1% for the quarter  ended  December 31, 2019.

Effective April 1, 2020, the Smart World and Communication business which was reported under Infrastructure Segment has been reclassified to “Others Segment” and accordingly, previous year figures have been regrouped wherever necessary.

Power Segment

The Power Segment did not secure any major order during the quarter ended December 31, 2020, attributed to absence of green field thermal power project opportunities.

The order book of the segment stood at ₹ 13,710 crore as at December 31, 2020, with the international order book constituting 6% of the total order book.