Consolidated net profit for the quarter stood at Rs 2,055 crore compared to Rs 2,467 crore a year ago.
However, consolidated revenue for the quarter increased by 11% to Rs 39,563 crore as project execution accelerated in the quarter, the company said.
The company received new orders worth Rs 50,359 crore during the quarter, pushing its total consolidated order book to its highest level ever of Rs 340,365 crore. The influx of orders in the quarter was 31% lower than the corresponding quarter last year, when the company brought in Rs 30,000 crore for the Mumbai Ahmedabad high-speed rail.
Giving an outlook for the future, R Shankar Raman, CFO of the IT infrastructure and services conglomerate, said the company has a new addressable order pipeline in the market of Rs 4 lakh crore, mainly on the side of infrastructure. Given the company’s historical contract success rate of approximately 15-20%, if all of these contracts are awarded this quarter, the company could achieve its low to medium growth rate outlook for teens. data at the start of this exercise, he said. .
Larsen and Toubro Ltd stock closed down 0.65% at Rs 1,898.8 on BSE on Friday against a 0.13% decline in the benchmark Sensex.
Half of L&T’s new orders in the quarter under review came from its core infrastructure segment, which now has an order book of Rs 248,900 crore. The segment recorded 16% year-on-year growth in revenue to Rs 18,345 crore as project execution accelerated. The segment reported an EBITDA margin of 7.1%, a year-over-year improvement of 90 basis points.
Executing the growing order book is facing some challenges due to a shortage of skilled workers, Raman said.
The revenue share of the IT and technology services segment of the conglomerate business continued to increase, reaching 21% of revenue compared to 18% a year ago. This is in line with the company’s efforts to increase service revenue, even as it divests non-core businesses and capital-intensive assets.
The IT&TS segment, which comprises three listed companies including Mindtree, reported revenue of Rs 8,397 crore, up 29% year on year. The segment’s EBITDA margin decreased by 1.7 percentage points to 23.8%, mainly due to high attrition in the sector.
“All the businesses have seen tremendous growth largely because of the enabling environment,” Raman said on a Friday night media call.
“The growing talent shortage is a challenge, the strong business outlook offers immense opportunities for this sector,” he said.
Meanwhile, the conglomerate’s Power segment was shrinking due to growing global environmental pressure on fossil fuel-based power. The segment did not receive any major orders during the quarter and its backlog stood at Rs 10,446 crore. Revenue improved by 19% to Rs 1,066 crore.