Mumbai - Larsen & Toubro achieved Consolidated Revenues of 29,335 crore for the quarter ended June 30, 2021, registering a y-o-y growth of 38%, attributed to healthy execution of projects despite the second wave of Covid-19 affecting operations at many locations.
Project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions. The International revenues during the quarter at 11,186 crore constituted 38% of the total revenue.
The Company posted Consolidated Profit After Tax (PAT) of 1,174 crore registering substantial y-o-y growth of 287% over the corresponding quarter of the previous year. The Company bagged orders worth 26,557 crore at the Group level during the quarter ended June 30, 2021 registering a growth of 13% over corresponding period of the previous year. During the quarter, orders were received in various segments like Metros, Rural Water Supply, Minerals and Metal, Residential, Power Transmission and Distribution, Power and Hydrocarbon Offshore sectors. International orders at 9,045 crore during the quarter comprised 34% of the total order inflow.
The consolidated order book of the group was at 323,721 crore on June 30, 2021, with international orders at 20% of the total order book.
Infrastructure segment secured orders of 11,023 crore, during the quarter ended June 30, 2021, registering a marginal decline over the corresponding quarter of the previous year, mainly due to pandemic induced delay in tendering activities and finalization of orders. International orders at 1,058 crore constituted 10% of the total order inflow of the segment during the quarter.
The segment order book was at 244,621 crore on June 30, 2021, with the share of international orders in the order book at 20%. The segment recorded customer revenues of 10,409 crore for the quarter ended June 30, 2021, registering y-o-y growth of 63% with better execution momentum. International revenues constituted 23% of the total customer revenues of the segment during the quarter.
The EBITDA margin of the segment during the quarter ended June 30, 2021 was at 7.1% vis-a-vis 6.3% recorded in the corresponding quarter of the previous year. Better job mix and higher recovery of overheads contributed to margin improvement despite the commodity price inflation affecting the input costs.
The financial year commenced with the country witnessing a more severe second wave of Covid-19, affecting consumption demand and the investment momentum, both of which resulting in the scaling down of the Indian GDP growth forecast.
With the waning of the second wave of the pandemic and lockdown restrictions progressively being eased in the recent weeks, signs of pick-up in economic activity is visible. Further, with expectation of a repeat normal monsoon, agriculture sector is likely to remain buoyant. The economy is expected to gain lost ground, aided by the fiscal stimulus packages announced, adoption of new Covid compatible occupational models by businesses and the vaccination efforts gathering momentum. Also, with external demand strengthening, a rebound in global trade is expected, providing fillip to the country's exports.
Globally, Government stimulus packages are helping to boost demand and businesses are adapting better to the emerging physical and economic realities. The sustained high oil prices is expected to boost the investment momentum in GCC nations. The recovery however may remain uneven as the global economy continues to be vulnerable to future setbacks due to mutated variants and waves of the Covid-19 virus as evidenced by reintroduction of lockdown restrictions by some countries while others are engaged in progressive unlocking. The Company's focus continues to be on efficient execution of its large order book, working capital reduction, cost optimization through use of digital technologies aimed at operational efficiencies and driving an agile Balance Sheet. The Company is optimistic of its growth aspirations in the medium term as the economic outlook improves and is committed to creation of sustainable returns to stakeholders.
Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.
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