Larsen & Toubro reported 17 percent year-on-year decline in net income for the third quarter of 2021-22 at the RS 2055 Crore, because the combined effects of low income from treasury operations in the quarter and higher profits in the first quarter were driven by the advantage of the divestment, great engineering said on January 28.

The company’s consolidation income in the December quarter is Rs 39,563 Crore, up 11 percent, reflecting an increase in the implementation of infrastructure projects and strong growth in the field of Information Technology (IT) and the service business.

The company announced the results after the exchange was closed for trade. The company’s shares were closed at Rs 1898.80 on Friday, down 0.65 percent from the previous close. L & T answered the estimated road for income. A poll moneycontrol of five brokers was pegged by the consolidated net income of the Company at Rs 2,185 Crore on income from RS 39,687 Crore for the quarter reported.

profit decline

Other clean income L & T is almost half from RS 1,065 Crore last year to Rs 571 Crore in the December quarter.

Raman said that L & T has raised funds that must be prepared for a pandemic on liquidity fears. This money is parked in a financial instrument where the company makes a big profit. Like worries around the impact of the pandemic on the business subside, the company reduces debt which in turn reduces surplus invested and causes another income decline in reduced.

He said that the company repayed RS 10,000 Debt Crore in the quarter, most of which grew up a year ago to keep business in a pandemic.

“From surgery, we were luckier than the previous quarter. From Treasury surgery, there is a sauce. As a result, before the outstanding post and before the business was stopped, we had a drop of RS 200 crore net income which was a 9 percent decline, “Raman said.

Decreased profit widened due to higher basic effects. While the important part of the results of the electrical business divestment and automation for Schneider Electric ordered in the second quarter of 2020-21, some parts of it had been ordered in the third quarter.

“There is a tail effect of transactions that are the third quarter produced by Rs 200 Crore profits (at Q3FY21),” Raman said.

Book orders and pipes

L & T reported 31 percent year-on-year decline on a new order in the December quarter at Rs 50,359 Crore; Connecting to a high base in the same quarter last year because then the biggest engineering engineered once, the procurement and construction of the contract for the Mumbai-Ahmedabad High Rail project.

The share of international orders, especially from the Middle East, is 40 percent of the total order inflow. The L & T consolidated order book is at the highest at RS 340,365 Crore as at the end of December, 24 percent is an international order. Orderbook is Executable for the next three-four years.

“We continue to refresh the pipe every quarter to update it with removal and addition. Based on projects in various sectors, the pipe adds close to four Crore Lakh rupees, “Raman said.

GUIDE

While L & T management is optimistic about the visibility of a strong frame pipe, they have worries on the schedule.

“There is always a big question mark about time. This is something uncontrollable from our end. What we can do is the position of ourselves is competitive, responding to the emergence and hope of maintaining a 15-20 percent strike level that we have historically have, “CFO said.

In October, when announcing the results of Q2FY22, Raman said that L & T was convinced that it would fulfill the FY22 guidelines which were low in adolescent growth to the middle of the order and income.

“There is a reasonable possibility that we still have to have the opportunity to struggle to move towards the way we think this year will be at the beginning of the year. We say anywhere in low-to-mid teenagers, not mid-teenagers, “he said.

Key segment performance

The L & T core business, its infrastructure segment, recorded third party revenues from RS 18,345 Crore for the December quarter, up 16 percent on a good pick up back in the best value execution momentum. The company managed to increase profit before interest, tax, depreciation and amortization (eBidta) Margin almost 100 basis points to 7.1 percent due to a certain depressed job and the overall productivity of higher sites even though there was a higher cost of procurement of material procurement costs, the company said. .

The power segment business is fixed and the company does not win a new project because fossil fuel-based power projects continue to lose assistance between investors.

Heavy engineering businesses see bursts of orders in refineries and oil and gas businesses, even as income and profit margins when out of work decreasing.

The defense technique segment reported a decrease in income due to tapering the implementation of work that took place in the ship making business.

The hydrocarbon segment reported Rs 4,880 crore income during the quarter ended in December, up 11 percent in the year by peaking execution activities in domestic vertical on land, but won several new orders than the same quarter last year.

IT segments and technology services, which include L & T Infotech, L & T Technology Services and Mindtree continue to grow on a surge in demand for more technology offering that focuses on technology.

The L & T financial services business, which includes subsidiaries registered L & T Finance Holdings, reported a decline in income associated with a targeted reduction in the overall loan book.

Road front

L & T said that non-core business divestment would continue to be a priority. Raman said that the company worked to close the immediate transaction despite macroeconomic uncertainty.

The company will also “aggressive” pursue a return ratio to create a continuous long-term return for shareholders.

“During the company quarter reiterated its commitment to integrate the purpose of environmental, social and corporate governance with business targets and work to become a ‘zero’ ‘company,” L & T stated.

L & T aims to achieve carbon neutrality in 2040 and water neutrality by 2035.