Larsen & Toubro consolidated gross revenue increases 1.4% y-o-y

Larsen & Toubro consolidated gross revenue increases 1.4% y-o-y

Larsen & Toubro recorded Consolidated Gross Revenue of Rs 26,287 crore for the quarter ended December 31, 2016, registering an increase of 1.4% on a y-o-y basis. The International revenue during the quarter at Rs. 9,590 crore constituted 36% of the total revenue. For the nine months April-December 2016, the Consolidated Gross Revenue at Rs. 73,183 crore recorded a y-o-y increase of 5.9%.

The Company garnered fresh orders worth Rs. 34,885 crore at the group level during the quarter ended December 31, 2016, amid subdued business environment. The International orders at Rs. 11865 crore constituted 34% of the total order inflow. On a cumulative basis, the order inflow for the nine months period ended December 31, 2016 stood at Rs. 95,706 crore. Major orders were secured by Infrastructure and Hydrocarbon Segments.

Consolidated Order Book of the group stood healthy at Rs. 2,58,585 crore as on December 31, 2016, higher by 1.4% on a y-o-y basis. International Order Book constituted 29% of the total Order Book.

Consolidated Profit After Tax (PAT) for the quarter ended December 31, 2016 at Rs. 972 crore, was higher by 39% y-o-y. For the nine months period ended December 31, 2016, the overall PAT was Rs. 3,017 crore, higher by 59% y-o-y, as compared to Rs. 1898 crore recorded for the corresponding period of the previous year.

Infrastructure Segment

Infrastructure Segment achieved customer revenue of Rs. 12,467 crore for the quarter ended December 31, 2016, registering a y-o-y growth of 6%. Delays in obtaining clearances and work slowdown, due to abrupt liquidity constraints of customers aggravated by demonetisation, impacted progress of jobs under execution especially in Buildings & Factories business. Transportation Infrastructure and Water & Effluent Treatment businesses contributed to the revenue growth during the quarter. International revenue constituted 37% of the total customer revenue of the segment.

During the quarter ended December 31, 2016, Infrastructure segment won fresh orders of Rs. 21,516 crore despite sluggish investment climate. Some of the anticipated orders did not materialize due to delays in bid process. The order inflow during the quarter was contributed by Heavy Civil Infrastructure, Power Transmission & Distribution, Building & Factories and Water & Effluent Treatment businesses. International orders contributed to around 33% of the total order inflow of the segment during the quarter.

The Order Book of the Segment grew 2% on a y-o-y basis and stood at Rs. 1,94,315 crore, as on December 31, 2016.

The segment recorded EBIDTA margin at 8.3% during the quarter ended December 31, 2016, vis-à-vis 7.2% recorded in the corresponding quarter of the previous year. The margin improvement during the quarter was driven by good progress on jobs under execution and cost optimization initiatives.

Power Segment
Power Segment recorded customer revenue of Rs. 1,633 crore during the quarter ended December 31, 2016, registering a y-o-y decrease of 23%, due to lower order book. International revenue constituted 14% of the total customer revenue of the segment during the quarter.

Power Segment secured fresh orders of Rs. 297 crore for the quarter ended December 31, 2016. On a cumulative basis, the order inflow of the segment for the nine-month period ended December 31, 2016 stood at Rs. 2629 crore, registering a modest growth of 1% y-o-y. International orders constituted 23% of the total order inflow of the segment during the nine-month period ended December 31, 2016.

The Order Book of the Segment stood at Rs. 15,684 crore as on December 31, 2016. The segment EBIDTA margin for the quarter ended December 31, 2016 was lower at 1.5% vis-à-vis 5.4% recorded in the corresponding quarter of the previous year, reflecting the mix and stage of completion of jobs under execution.


Heavy Engineering Segment

Heavy Engineering Segment recorded customer revenue of Rs. 798 crore registering a y-o-y decrease of 8%, on account of deferral in award of targeted orders and tapering opening order book. International Revenue constituted 42% of the total customer revenue of the segment.

Heavy Engineering Segment secured fresh orders valued Rs. 601 crore during the quarter ended December 31, 2016, recording a y-o-y increase of 80% on a low base. International orders constituted 9% of the total order inflow of the segment during the quarter.

The Order Book of the Segment stood at Rs. 7,494 crore as on December 31, 2016. The EBIDTA margin of the segment improved significantly to 20.3% for the quarter ended December 31, 2016, on the back of better execution progress and cost savings vis-à-vis low margin of 1.5% impacted by cost and time overruns during the corresponding quarter of the previous year

Electrical & Automation (E&A) Segment
E&A Segment recorded customer revenue of Rs. 1282 crore during the quarter ended December 31, 2016, registering a marginal growth of 1% y-o-y. Revenue accrual during the quarter was impacted, due to non-receipt of orders by Metering and Protection

Systems business and delayed international order inflows. International Revenue constituted 27% of the total customer revenue of the segment for the quarter ended December 31, 2016.

The EBIDTA margin of the E&A Segment strengthened to 15.7% for the quarter ended December 31, 2016, recording an increase over 11.1% earned during the corresponding quarter of the previous year driven by favourable product mix and improved operational efficiencies.

The Order Book of the Segment registered a y-o-y decline of 2% and stood at Rs. 3300 crore as on December 31, 2016.

Hydrocarbon Segment

Hydrocarbon Segment achieved customer revenue of Rs. 2,398 crore for the quarter ended December 31, 2016, registering a y-o-y growth of 14% over the corresponding period of the previous year.  International revenue constituted 52% of the total customer revenue of the segment for the quarter ended December 31, 2016.

Hydrocarbon Segment secured fresh orders valued Rs. 2,638 crore during the quarter ended December 31, 2016, taking the total order intake for the nine months ended December 31, 2016 to ` 11249 crore, which more than doubled on y-o-y basis.

International orders during nine months ended December 31, 2016 constituted 74% of the total order inflow of the segment. The Order Book of the Segment registered a y-o-y growth of 57% and stood at Rs. 20375 crore as on December 31, 2016.

Hydrocarbon segment recorded improvement in the EBIDTA margin at 7.8% for the quarter October to December 2016 vis-à-vis 1.5% recorded in the corresponding quarter of the previous year, as jobs under execution gained momentum. Legacy international jobs, which had impacted margins in the previous year, have been substantially closed out.

 

 

 


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