L&T puts up good show in March quarter: Top 5 takeaways

NEW DELHI: Engineering major Larsen & Toubro on Monday reported a 29.50 per cent year-on-year (YoY) jump in consolidated profit after tax (PAT) at Rs 3,025 crore for March quarter.

This was better than Rs 2,610 crore profit estimated in an ETNow poll.

Consolidated gross revenue for the quarter rose 12 per cent on a YoY basis, the company said in a filing to BSE.

Here are five key takeaways from L&T’s fourth quarter results.

Infra segment on a recovery path
The engineering major said that impediments such as delayed payments and clearances and workfront availability impacted execution progress during the quarter. That said the pace of execution gained traction in March quarter, as the company recorded 10 per cent YoY growth in customer revenue at Rs 20,031 crore.

For the full year, the company bagged orders worth Rs 78,492 crore, hurt by bid deferrals, weak private investments in the domestic market and muted prospects in the international market. Order book in this segment rose 3.4 per cent in the March quarter at Rs 1,93,796 crore.

Focus on cost optimisation, restructuring
The company said that it was looking to focus on profitable execution of large order book, selective order picking and cost competitiveness. In a filing to BSE, it said that it would look to optimize working capital and restructure its business portfolio to enhance return on equity
Supportive monetary policy aided by normal monsoon and contained inflation will provide the requisite stimulus,” it said.

Power segment sees intense pressure
The order book for the segment stood at Rs 13824 crore as of March 31. This was 25 per cent lower than the order book the company had in the year-ago period.

For the march quarter the company resistered revenue of Rs 1839 crore, down 3 per cent on YoY basis. The company could secure Rs 2,866 crore order for the quote FY17, which was 1.2 per cent lower than FY16 level., thanks to “multiple challenges” and intense competition.

Bonus issue
The board of directors of the company approved bonus share issue in the 1:2 ratio.

The company said that subject shareholders’ approval, bonus shares will be credited to investors on or before July 28, 2017.

The company expects country’s economy to see steadily improvement in the current year backed by structural reforms and overcoming of short term effects of demonetisation.

It also believed that supportive monetary policy aided by normal monsoon and contained inflation will provide the requisite stimulus.

Let’s block ads! (Why?)

Markets-The Economic Times

Leave a Reply

Your email address will not be published. Required fields are marked *